Managing records

Good habits form by repetition

Accounting mistakes can seriously damage your business’s cashflow, which is why you should always hire an experienced accountant to manage your affairs. However, there are steps you can take to keep things in order by avoiding the most common errors.

Invoices

Each time you invoice a customer, make a record of what they owe you. This enables you to see their outstanding balance when you check your accounts. You should update your records each time they pay up or settle their bill.

If you are busy, it is very easy for this process to slip. Consequently, when the time comes to file your tax return time, you have a pile of deposits in your revenue account and a balance sheet that does not balance.

Get into the habit of updating your records on a weekly basis to save you time, money and headaches in the long run.

Receipts

Always keep receipts of any business expenses ready to file them when called upon. There is nothing worse than looking at a bank statement and having no idea what that £50 payment was for. The expense can leave you scratching your head and potentially misreporting it on your accounts.

Every time you make a business purchase, keep the receipt. To ease the burden of filing all those little slips of paper, why not scan each of your receipts and store them electronically? This way, you can keep all your receipts together in date order, and make it a habit to file them away each week in your tax folder.

Tax returns

Many small business owners try to save money by managing their own tax returns and accounts. This can be an expensive mistake if you get it wrong.

It is often more economical, both in terms of time and hassle, to hire a firm of chartered accountants to do your tax return for you.

By choosing to work with Dunkley’s, your tax return will be fully analysed and reviewed to see if any tax savings can be made. The tax team will also highlight any anomalies that need to be addressed before submitting the return.

By allowing us to aid you in the process, you will not only minimise your risk of an HMRC enquiry but will also find yourself better off. You will learn of more ways to become tax efficient and take away the worry of completing it yourself, allowing you to sit back and fully concentrate on running your business.