Katie

Katie

Katie is copywriter at Debitoor, creating content and assisting with customer support for the English-speaking markets

Katie

The different types of accounting

If you’ve recently started a business, you may be surprised to learn that there is more than one type of accounting. In fact, there are a variety of different accounting methods, terms, and systems available that each analyse different aspects of your business.

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This article outlines the top 4 accounting types that your business should be aware of. We’ll explain how each of them works, in which cases you should use them, and which accounting documents are required.

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Katie

Construction Accounting: The Basics

Construction accounting can be complex, especially due to the many schemes and regulations introduced by the UK Government. Taking control of your finances is essential for the stability and long-term growth of a construction business.

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This article explains how to do construction accounting, how it differs from accounting in other sectors, and important considerations.

Katie

Customer retention strategies

Now that businesses are starting to reopen after the lockdown, they should try to find ways to not only gain new customers but also retain their existing customers long-term.

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Katie

How Debitoor can help you complete your Self Assessment

Completing your Self Assessment tax return isn’t the most enjoyable part of running a business, but it needs to be done. Luckily, Debitoor makes it simple for you to find the data you need to make the process straightforward and effortless.

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The past year has been a whirlwind and anything but normal. Most businesses have taken a hit from the pandemic, and many are even shutting their doors for good. This hasn’t been an easy year, but hopefully, we can help you make your taxes a little bit simpler.

If you use Debitoor as a freelancer or self-employed person, you can track your expenses, record your income, access accounting reports, export your data, and invite your accountant. This article explores the different ways that Debitoor invoicing software can help you complete your Self Assessment.

Katie

New tax year: Changes from April 2021

Every April, the UK enters a new tax year, and most of us will be happy to put 2020 (finally) behind us. Over the coming weeks or months, you’ll likely start preparing your financial documents to submit your Self Assessment or Company Tax Return. There are also some upcoming changes that you should be aware of.

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Unlike previous years, the coronavirus pandemic has delayed many of the scheduled changes that were supposed to take place.

This article looks ahead to the new tax year, including tax breaks, VAT changes, new regulations, and wage changes being introduced.

Katie

How to create a domestic reverse charge invoice on Debitoor

From March 1st 2021, the domestic reverse charge procedure was implemented in the UK for construction services. From this date, suppliers (subcontractors) will need to issue reverse charge invoices, which passes the VAT reporting obligations to the buyer (contractor).

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This article shows you how to create a domestic reverse charge invoice on your Debitoor account. You can read more about the domestic reverse charge procedure on our blog: “Domestic VAT reverse charge for construction services".

Katie

New “Outstanding invoices” filter for account statements

At Debitoor, we record every feature request we receive from our users. We recently released a date filter for your customer account statements and are pleased to announce that we have now added an additional filter for outstanding invoices!

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With this small but powerful update, you can filter your customer account statement even further by only including unpaid invoices from a time period of your choosing.

Katie

Can I claim business expenses without a receipt?

Understanding what you can and can’t claim as a business expense is important, especially if you are just starting your business. This article outlines what you can claim as a business expense, if you can claim without a receipt, and how to easily keep track of your business expenses with invoicing & accounting software.

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Most businesses are aware that they can claim their business expenses as a deduction on their Self Assessment tax return. However, it is less commonly known that you can claim pre-trading costs from before you started your business. In fact, most pre-trading expenses and expenses incurred in your first year of business can be claimed.

Katie

New Debitoor feature: filters for account statements

Due to popular demand, we have added filters to your customer account statements! We received several requests for this feature and are pleased to announce that it is now available on your Debitoor account.

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Previously, the account statements would include all invoices linked to the customer, both paid and unpaid, from the time the customer was saved to your account. Now, you can add a date filter to only include invoices from a time period of your choosing.

Katie

Should freelancers charge by the hour or by the job?

A common question in the freelance world is whether you should charge your customers by the hour or by the project. Both have pros and cons and depend on many factors including the type of services you provide. This article explores both pricing methods and will help you identify which solution will work best for your freelance business.

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Setting your prices can be tricky, especially if you’re just starting out as a freelancer. There is no right or wrong way to set your rates, and your pricing method may change throughout your career as you gain more expertise and customers. Ultimately, it is up to you to decide which pricing method would work best for your business.

Katie

Postponed VAT accounting for imported goods

As of January 1st 2021, VAT registered businesses that import goods into the UK can use a new system called postponed VAT accounting. This allows businesses to account for the import VAT on their VAT Return instead of paying it immediately upon entry to the UK.

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Now that the UK has left the EU, VAT is due on imports from anywhere in the world if the value of the goods is over £135 (commercial goods threshold). This article outlines what postponed VAT accounting is, who can use it, and how it will look on your VAT Return.

Katie

What is the difference between an invoice, a bill, and a receipt?

As a freelancer or small business owner, you've most likely heard of invoices, bills, and payment receipts, but you might not be aware of the differences between them. These terms can often be used interchangeably in the business world but there are some key differences.

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In this blog post, we’ll take a closer look at each of these documents, and explain how they fit into the sales process and how they differ from each other.

Katie

Debitoor update (EU): How to record reverse charge after Brexit

As you know, the UK will be leaving the EU on January 1st 2021. Because of this, we have had to make some adjustments to the Debitoor software surrounding how your EU business records reverse charge transactions for UK customers.

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This article explains how EU VAT registered businesses will record reverse charge invoices and expenses from UK customers and suppliers in the new year. If you are a UK based business, you can find further information on our UK Brexit blog.

Katie

Debitoor update (UK): How to record reverse charge after Brexit

Because the UK is officially leaving the EU on January 1st 2021, we have made some adjustments to the Debitoor software. These changes surround how you record reverse charge invoices and expenses on your account.

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This article explains how UK businesses should record reverse charge transactions from EU businesses in the new year. If you are an EU business who sells to the UK, you can find further information on our Brexit blog for EU companies.

Katie

A look back at 2020 and what to look forward to in 2021

A lot has happened in 2020 and I think we’re all excited to get back to normal life in 2021. We’ve had a busy year at Debitoor, and we’re ready to celebrate! Let’s take a look at what has changed with your invoicing software in 2020, and what to look forward to in 2021.

A look back at 2020 and forward to 2021 with Debitoor invoicing software

2020 has been a crazy year, and with most of the Debitoor team working from home, we also had to make some changes to how we operate. Nonetheless, we had one of our most productive years and implemented some amazing new changes.

Here are just a few things that we’ve updated or added to Debitoor in 2020...

Katie

How long do I need to keep invoices?

So you’ve started a business and things are going well. But now you have several invoices and don’t know what to do with them. Do you need to keep them or can they be thrown away once you’ve received payment? In this article, I’ll explain how long you need to keep a record of your invoices and why it’s important.

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In the UK, invoices are accounting documents and need to be kept for 6 years from the end of the financial year it relates to. This includes both sales invoices you issue to customers as well as purchase invoices you receive from suppliers.

Katie

What will a no-deal Brexit mean for UK businesses?

With less than 2 months until the transition period ends, there has yet to be a deal between the EU and the UK. It is becoming increasingly possible that we will be leaving the EU without a deal. In this article, I will explain what this means for UK businesses in terms of EU customers, suppliers, imports, exports, and VAT.

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Although January 1st 2021 is approaching fast, Brexit talks are nowhere near completed. Even if a deal is agreed upon in the coming weeks, there will still be talks and negotiations for months, and maybe even years to come.

Katie

Why freelancers should ask for payment in advance from new clients

Every freelancer at one point in their career has completed a project for a client, only for that client to magically disappear without a word (or a penny). It’s frustrating, emotionally and financially draining, and just flat-out wrong. Here, I'll discuss ways that freelancers can avoid these situations by asking for payment in advance.

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Everyone deserves to get paid for the work they do - especially in the age of the coronavirus where every penny counts. That’s why freelancers should ask for a deposit, or full payment upfront when taking on a new client.

Katie

England November lockdown: information for businesses

England is heading into a second national lockdown on November 5th lasting for 4 weeks. The government has ordered all non-essential businesses to close and issued a stay at home order that can only be broken for specific reasons.

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In this article, I will outline what businesses need to know about this lockdown, and what support is available to them and their employees.

Katie

Wales fire-break lockdown: schemes for affected businesses

On Monday, the Welsh government announced a fire-break lockdown lasting from October 23rd to November 9th 2020. This strict national lockdown will affect all aspects of our daily lives from travel, work, education and exercise. Due to the nature of this lockdown, the government has announced new schemes to support businesses that are forced to close their doors.

Wales fire-break lockdown new schemes for affected businesses

Katie

When to issue a proforma invoice

At Debitoor, we get a lot of questions about proforma invoices. Most businesses are aware of the term but are not entirely sure of how they fit into the sales process. In this article, I will describe when you should issue a proforma invoice instead of a quote or completed invoice.

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A proforma invoice is essentially a ‘draft invoice’ that is issued when a customer has confirmed that a sale will occur but has yet to finalise the details.

Katie

Year end accounting for limited companies

Year end accounting can be a daunting task for new limited companies. But after reading this article, you will feel much more prepared to take on the task!

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UK limited companies are legally required to submit their year end reports to HMRC and Companies House. In this article, I will explain what information you will need to report, the reporting deadlines, and a simple year end checklist.

Katie

Invoicing software for taxi drivers

Do you work as a taxi driver and safely transport fellow humans from A to B? You can be proud of that, because with you in the car, your passengers can relax and quickly get to their destinations.

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But then the paperwork comes, which let’s be honest, is not the most enjoyable part of your day. In this article, I'll explain how to correctly and efficiently manage invoices and accounting for your taxi business.

Katie

10 Common and costly VAT Return mistakes

Everybody makes mistakes, however, learning from your mistakes and ensuring that they don’t happen again is what sets businesses apart. Let’s face it, the VAT process can be extremely complex with several schemes and rules. In this article, I will outline some common mistakes when submitting your VAT Return to HMRC.

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A VAT Return is a document that UK VAT registered businesses submit to HMRC on a quarterly basis. It outlines how much VAT the business needs to pay, or how much should be reimbursed by HMRC based on their transaction history from that accounting period.

It seems rather simple, however, there are multiple schemes and specific rules based on the nature of your business and the products or services you sell.

Katie

From quote to payment receipt: the process of a sale

In the sales process, there are several different documents you can issue to your customers. Each document has its own distinct function dependent on which stage of the sale you are in. In this article, I will discuss the sales process and when to issue a quote, proforma invoice, invoice, delivery note, and receipt.

The process of a sale from quote, to proforma invoice, to invoice, to delivery note, to payment receipt. Title Image.

Katie

Can you use a proforma invoice for a deposit?

Both proforma invoices and deposits are very common in the business world. But can you accept a deposit on a proforma invoice? To answer this question, we need to dive into the legality of a proforma invoice, and how to correctly record payments for your accounting records.

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Katie

How UK workplace pensions work

Have you heard about workplace pensions but unsure of exactly what they are? Don’t worry, pensions can certainly be a confusing topic. In the UK, employers must offer a workplace pension to employees, and automatic enrollment for eligible staff.

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In this article, I will explain everything you need to know about workplace pensions both on the employee and employer side.

Katie

Can payment be made on a proforma invoice?

If you run a business, you have probably issued a proforma invoice to a customer. However, proforma invoices differ greatly from a standard invoice. In this article, I will explain what proforma invoices are, how they differ from standard invoices, and if you can accept payment on a proforma invoice.

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The simple answer is no, a payment cannot be made on a proforma invoice. However, in order to understand why we will need to dive into the topic of how proforma invoices and standard invoices differ.

Katie

What is the difference between a proforma invoice and a draft invoice?

Have you ever heard of the terms ‘proforma invoice’ and ‘draft invoice’ but are unsure of what they actually mean? Don’t worry, these two invoice types can certainly cause some confusion. In this article, I will explain what proforma and draft invoices are, how they are used, how they differ from each other, and how to create them.

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Katie

What to do when a customer asks you for a discount

Everyone appreciates a good discount when they’re shopping. However, if you’re a business owner, you may wonder why on earth you would charge less for your products or services. Obviously, if the customer pays less, you earn less. Here are some tips and ideas on the types of discounts you can provide.

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As a business owner, I’m sure you’ve had a customer ask “can you give me a better deal?”. You may already have a discount strategy in place, however, I will explain a variety of different options you can offer to your customers.

Katie

How to register for the Eat Out to Help Out Scheme

It’s August and coronavirus restrictions are slowly being lifted. Restaurants and bars are now allowed to open in the UK, and the Government has set out a scheme to encourage restaurants to open, and the public to eat out to help the businesses most affected by the pandemic.

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In this article, I will outline the requirements for registering for the Eat Out to Help Out scheme, how to register, VAT considerations, and how to make a claim.

Katie

Time limits for issuing invoices

Whether you prefer to invoice after a job is completed, or just flat out forgot to issue an invoice, you may be asking “how late is too late”? In this article, I will outline the best practices when it comes to invoicing retrospectively, and if there are any time limitations for the invoice to remain valid.

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Ensuring that your invoices are raised on time will not only help you maintain the businesses cash flow and keep accurate records, but it will also help you get paid sooner.

Katie

Invoicing software for schools

Do you work in the financial department of a school? If so, you will understand how important it is to keep your books balanced, ensure that all students have paid the correct fees and that teachers are getting the correct salary. Invoicing software can help you will all aspects of your finances.

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Whether you work for a university, music school, language school, or kindergarten, it is important to keep detailed financial records. In this article, I will explain how invoicing software can help you with creating and sending invoices, recording expenses, and keeping track of your accounting reports.

Katie

How to pay tax on self-employed income

So you run your own business and are earning some income. Good for you! But you may be wondering how to pay your income tax and national insurance contributions on self-employed income. Look no further, in this article I will explain how it’s done.

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Whether you’re a self-employed musician, graphic designer, or uber driver, you will need to pay tax to your local authorities. In this article, I will discuss taxes related to sole trader businesses in the UK.

Katie

Design update: new 'Export Data' location

Happy Wednesday! Today, we wanted to provide you with a design update on our popular feature, ‘Export Data’. This feature allows you to export information, such as a list of invoices or expenses, directly to your computer. Since we feel that this is such an important Debitoor feature, we have made it easier for you to find!

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Katie

VAT between the UK and the US

The UK and the US have an important trade relationship. However, due to completely different tax systems, the process can be quite confusing. In this article, I will explain the VAT process when exporting or importing goods and services between the UK and the US.

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Katie

How to accept payment with Debitoor

So you’ve set up your business, chosen an invoicing software, and sent your first invoice - great job! But how do you accept payment from a client? Debitoor invoicing software has several ways to accept payment, regardless of if your customer is in front of you or halfway across the world.

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Whether you have a card reader, transact in multiple currencies, or want to connect your bank account, Debitoor has got you covered. Here are the many ways in which you can get paid using Debitoor invoicing software.

Katie

How to record payroll with your invoicing software

If you have employees at your business, you will handle payroll on a regular basis. You will also need to record your payroll expenses in your invoicing software to balance your accounting records. In this article, I will describe how payroll works, and how to accurately record it with HMRC, and Debitoor invoicing software.

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Katie

The different types of invoicing software

Whether you’re starting your own business, or looking for a new way to issue invoices, invoicing software can help you manage your company’s finances. Invoicing software can help you create and send invoices and quotes, keep track of expenses and payments, and create automatic accounting reports.

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There are two main categories of invoicing software, online and offline. I’ll explain the differences between them and also explain other types of invoicing software that may suit your business.

Katie

How to get set up as a self-employed contractor in the UK

Congratulations on taking the first step to become an independent contractor! You are great at what you do and have decided to branch out and start your own business. The first step is doing lots of research to ensure that your business takes off running. In this article, I will describe the steps involved in setting yourself up as a self-employed contractor in the UK.

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This is a new chapter in your life, a milestone that you will look back on later in life. Although this is exciting, you will need to understand that this may be a challenge which requires a brand new set of business skills that you have never considered before. Here are some tips to help you get started.

Katie

Online invoices vs paper invoices: the paradigm of invoicing software

We live in a digital world, and as the great Bob Dylan put it, "the times, they are a-changin’". The world we live in is quickly adapting to technological advances, and things that were relevant one day may be obsolete the next.

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Invoicing software constantly becomes more intuitive and powerful. With advances like the OCR system and cloud computing, it is easy to keep track of your business finances online. In this article, I will describe how online invoicing software compares to paper accounting.

Katie

Intra-EU transactions and the reverse charge mechanism

If your company sells products or services to a client in another EU country, the VAT process is different from if you were selling to a client domestically. The same system applies if you are buying products or services from another EU country. The system is called “reverse charge on EU VAT” which simplifies VAT within the European single market.

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Since intra-EU transactions are so common, we’ve laid out the specifics for you. We’ll explain what these transactions mean for both VAT registered, and non-VAT registered businesses, how to record the transactions on your invoicing software, and examples of how they work.

Katie

COVID-19 Government support for Irish businesses and freelancers

Here at Debitoor, we understand that this is a difficult time for everyone. Businesses are forced to shut, freelancers are out of work, and employees have been laid off due to this global pandemic. The Irish government has issued several loans, grants, and schemes to help you get through the next few months. I have explained them all in detail below.

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Katie

The difference between full, simplified, and modified VAT invoices

In the UK, there are 3 different types of VAT invoices you can send to your clients: full invoices, simplified invoices, and modified invoices. Each type has a specific purpose and is used in different circumstances. We will explain each of them in detail below.

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If you are a VAT registered business in the UK, you will need to understand how to issue invoices inclusive of VAT.

Katie

COVID-19 Government aid for UK small businesses and freelancers

During these unprecedented times, I’m sure that many freelancers and small businesses have faced some challenges. The UK government has introduced many different schemes to help laid-off employees, businesses, and self-employed persons to get through this difficult period. In this article, I will explain the government aid available for UK freelancers and small businesses during the COVID-19 pandemic.

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The UK government and HMRC have introduced financial support for businesses affected by the pandemic which outline several different factors including how to pay your employees, sick pay, tax, business rates, etc. It also outlines specific relief depending on your business type from freelancers to large corporations.

Katie

IR35 changes for UK contractors

If you are a contractor in the UK, you have probably heard about the IR35 changes that HMRC are planning to introduce. This article will describe what the IR35 changes are, if your business will be affected, and how to proceed with the changes.

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The IR35 changes were supposed to be introduced in April 2020, however, due to the COVID-19 pandemic, there will be a 1 year delay in the changes until April 2021.

The IR35 rules are currently different in the public and private sectors, and your tax status can change from each project or contract you accept. It can be complicated to figure out if you are complying with the rules, so I’ve explained in depth what IR35 is, why it was introduced, how to determine if it applies to you, and the upcoming changes in 2021.

Katie

How to create your first online store

Thinking of creating your first online store? There are several factors to keep in mind, choices to make, and steps to follow to ensure your online business takes off running! To get started, you need a computer, a great idea, some tech skills, and a go-getter attitude.

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Creating your first online store takes some time. First thing is to decide what you are going to sell and who your audience is. Second thing is deciding if you will be using a supplier, or if you will be holding your own inventory. Once you have those things figured out, it’s time to get to the nitty-gritty of creating your online shop.

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