Coping with red tape

Red tape can tie a company in knots

Red tape is the nightmare of the small business, but it needs to be managed effectively for the business to survive.

Running a business inevitably causes paperwork.

The tax authorities are responsible for much of it, whether requiring the completion of VAT forms, year-end income, corporation tax calculations or PAYE-related activity.

In addition, complying with the numerous business regulations on issues such as health and safety, employment rights and trading standards, all take up the small business person's time.

Make sure you know what has to be done when, establish systems and make sure you stick to them.

For example, try to update your accounts regularly and avoid leaving the completion of VAT and income tax returns until the last minute, so that any unexpected problems can be solved in time.

Expert advice

Try to get into the habit of regularly filing paperwork, so that you can always find what you need when you need it.

Make effective use of experts for advice on how to cope with regulatory issues and changes to the current situation.

Many firms of accountants and lawyers provide briefings on regulatory and tax changes. Get into the habit of reviewing this information regularly.

Consider using part-time help for basic administrative functions, such as filing or bookkeeping.

This can free up your time to concentrate on growing the business and generating more income.

As you grow, you may want to contract out or outsource some activities to specialist organisations.

Accounting and payroll can be handled effectively in this way. Although you have to pay for the service, specialists will be able to complete the function more efficiently than you could yourself.