{"id":26199,"date":"2026-09-23T14:33:50","date_gmt":"2026-09-23T14:33:50","guid":{"rendered":"https:\/\/thebusinessculture.co.uk\/hey\/know-how\/the-finance-questions-every-small-business-owner-should-be-asking\/"},"modified":"2026-09-23T14:33:50","modified_gmt":"2026-09-23T14:33:50","slug":"the-finance-questions-every-small-business-owner-should-be-asking","status":"publish","type":"know-how","link":"https:\/\/thebusinessculture.co.uk\/hey\/know-how\/the-finance-questions-every-small-business-owner-should-be-asking\/","title":{"rendered":"The Finance Questions Every Small Business Owner Should Be Asking"},"content":{"rendered":"
\n

The Finance Questions Every Small Business Owner Should Be Asking<\/h1>\n

You don't need to be an accountant to understand the finances behind your business. But you do need to understand the basics.<\/span><\/p>\n

One thing I've noticed more and more is that business owners can sometimes feel embarrassed about asking financial questions.<\/p>\n

Maybe you've recently started a business and don't know what you should be asking your accountant.<\/p>\n

Maybe you've just incorporated your business as a limited company and aren't sure what changes.<\/p>\n

Maybe you've been trading for years but still aren't completely sure about the difference between profit, cash and the money sitting in your bank account.<\/p>\n

Or perhaps you've simply nodded along when your accountant has used terminology you didn't understand because you didn't want to ask.<\/p>\n

Please ask.<\/span><\/p>\n

There is no such thing as a stupid finance question.<\/p>\n

Your accountant or bookkeeper should be there to help you understand your finances, not make you feel like you should already know everything.<\/p>\n

So, here are some of the questions I think every small business owner should feel comfortable asking.<\/p>\n

I've just registered as a limited company, what do I actually need to know?<\/h2>\n

Becoming a limited company is a big step, and there are some important differences compared with being a sole trader.<\/p>\n

Ask your accountant:<\/p>\n

• What are my responsibilities as a director?<\/p>\n

• What records do I need to keep?<\/p>\n

• What are the important filing and tax deadlines?<\/p>\n

• How should I pay myself?<\/p>\n

• What's the difference between salary and dividends?<\/p>\n

• Do I need to register for PAYE?<\/p>\n

• When can I take money from the business?<\/p>\n

• What expenses can the company pay for?<\/p>\n

• What happens if I put my own money into the business?<\/p>\n

• What shouldn't I be paying for from the company bank account?<\/p>\n

You don't need to remember all the answers.<\/p>\n

You just need to understand what applies to your business.<\/span><\/p>\n

How much tax am I likely to pay?<\/h2>\n

Don't wait until your tax bill arrives to find out.<\/p>\n

Ask your accountant how your tax works and, where possible, what you should be putting aside.<\/p>\n

Depending on your business structure, this might include things such as:<\/p>\n

• Income Tax<\/p>\n

• National Insurance<\/p>\n

• Corporation Tax<\/p>\n

• VAT<\/p>\n

• PAYE and employer liabilities<\/p>\n

The important thing is understanding which taxes apply to you, when they're due and how much you may need to budget for.<\/span><\/p>\n

What is the difference between turnover, profit and cash?<\/h2>\n

This is one of the biggest things business owners can misunderstand.<\/p>\n

You can have a business that is profitable but still feel like there isn't enough money in the bank.<\/p>\n

And you can have plenty of money in the bank without necessarily having made a profit.<\/p>\n

Ask your accountant or bookkeeper to explain:<\/p>\n

Turnover<\/span>, how much your business has sold.<\/p>\n

Profit<\/span>, what's left after your allowable business costs have been accounted for.<\/p>\n

Cash flow<\/span>, the money actually coming into and leaving your business.<\/p>\n

Understanding these three things can completely change how you look at your business finances.<\/p>\n

What expenses can my business claim?<\/h2>\n

Don't rely on what another business owner tells you they claim.<\/p>\n

What is allowable depends on your circumstances and how your business operates.<\/p>\n

Ask:<\/p>\n

“What expenses can my business legitimately claim, and what records do you need from me?”<\/span><\/p>\n

And don't be afraid to ask about something simply because you're unsure.<\/p>\n

It's much better to ask before assuming something is or isn't allowable.<\/p>\n

What numbers should I actually be looking at every month?<\/h2>\n

Your accounts aren't just there for your accountant to prepare at year end.<\/p>\n

Ask your accountant or bookkeeper:<\/p>\n

• What should I be reviewing each month?<\/p>\n

• What does my profit and loss actually tell me?<\/p>\n

• How is my cash flow looking?<\/p>\n

• Are my margins healthy?<\/p>\n

• Are my costs increasing?<\/p>\n

• Am I charging enough?<\/p>\n

• What should I be keeping aside for tax?<\/p>\n

• Is there anything in my numbers that concerns you?<\/p>\n

Your accounts should help you run your business, not just tell you what happened last year.<\/span><\/p>\n

What deadlines do I need to know about?<\/h2>\n

This is another question worth asking early.<\/p>\n

Depending on your business, you may have deadlines for things such as:<\/p>\n

• Corporation Tax<\/p>\n

• VAT returns<\/p>\n

• PAYE<\/p>\n

• Confirmation Statements<\/p>\n

• Annual Accounts<\/p>\n

• Self Assessment<\/p>\n

• Making Tax Digital requirements<\/p>\n

• Other Companies House or HMRC obligations<\/p>\n

Ask your accountant to explain which deadlines apply specifically to you<\/span> and whether they will be dealing with them on your behalf.<\/p>\n

Don't assume that because your accountant normally handles something, everything is automatically covered.<\/p>\n

Know what you're responsible for and what they're responsible for.<\/span><\/p>\n

What should I be asking my accountant that I'm not asking?<\/h2>\n

This might be my favourite question of all.<\/p>\n

Your accountant has access to information about your business that can help you understand how it's performing.<\/p>\n

So ask them:<\/p>\n

“If this were your business, what would you be looking at?”<\/span><\/p>\n

It opens up a completely different conversation.<\/p>\n

Your relationship with your accountant shouldn't just be about submitting returns and telling you how much tax you owe.<\/p>\n

It should help you understand your numbers and make better decisions.<\/p>\n

You don't have to understand everything<\/h2>\n

Running a business doesn't mean becoming an expert in accounting, tax, payroll and financial legislation.<\/p>\n

You're the expert in your business.<\/span><\/p>\n

Your accountant and bookkeeper have their own areas of expertise.<\/p>\n

That's why asking questions matters.<\/p>\n

If someone explains something and you don't understand it, ask them to explain it differently.<\/span><\/p>\n

If they use terminology you don't recognise, ask what it means.<\/span><\/p>\n

If you don't know what you should be doing, ask.<\/span><\/p>\n

And if you're worried that your question is too basic?<\/p>\n

Ask it anyway.<\/span><\/p>\n

Because good financial support shouldn't make you feel stupid.<\/p>\n

It should leave you feeling informed, confident and in control.<\/span><\/p>\n

If you're looking for human, jargon-free financial advice from someone who gets it, get in touch with Books In Order<\/h2>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Finance Questions Every Small Business Owner Should Be Asking You don't need to be an accountant to understand the finances behind your business. But you do need to understand","protected":false},"author":12313481,"featured_media":26200,"template":"","know_how_category":[],"class_list":["post-26199","know-how","type-know-how","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/26199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how"}],"about":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/types\/know-how"}],"author":[{"embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/users\/12313481"}],"version-history":[{"count":0,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/26199\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/media\/26200"}],"wp:attachment":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/media?parent=26199"}],"wp:term":[{"taxonomy":"know_how_category","embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know_how_category?post=26199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}