For most people, the end of one year and the start of another means celebrating the holidays and looking forward to start anew. For businesses, it usually means managing finances from the year before and getting ready for the immediate financial future. Particularly, this entails preparations for the end of the current tax year and the start of a new one in April.
Unfortunately, for some entrepreneurs, their “do-it-yourself” and “minimum-spending” mentality gets the best of them and they attempt to manage their financial records by themselves. While this may work for some, expert bookkeepers and accountants in Bristol recommend companies to do a better job of keeping their records, as inconsistencies and lacking information may now lead to significant penalties. As detailed in an article published on PR Underground last December 4,2013:
Anyone running a business understands why it makes good sense to keep adequate company and financial records.
The business itself can operate more effectively and efficiently when records are in good order, accessible and contain accurate and appropriate information. They become a useful tool for decision-making.
But is your business aware that HMRC is now targeting small businesses to check if they are keeping adequate records?
HMRC first piloted its current approach to Business Records Checks in 2011. This involved checks on the adequacy of small and medium-sized business’s records.
The pilots found that around 44 per cent of businesses visited had issues with their record keeping, while around 12 per cent had seriously inadequate records.
At the moment HMRC may only levy a record-keeping penalty. However, in the longer-term, it intends to issue penalties of up to £3,000 for serious inadequacies in record keeping.
To ensure that records are well kept throughout the year and that penalties are avoided, businesses without their own financial team are recommended to acquire the services of a professional bookkeeper. For ease in managing records, experts recommend companies to hire a bookkeeper from the same firm where they hire their accountant. This ensures that financial records are better kept coordinated, not just during tax season, but throughout the year as well.
Bristol accountants from Wormald & Partners offer both accounting and bookkeeping, extensively meeting the financial management needs of charities, SMEs, start-ups, and large businesses. Companies who work with similar firms find themselves with financials and its associated records, consistently kept complete and in order as both the accounting and bookkeeping is managed in one place.
(Article Information and Image from “IAB Chief Executive Warns Businesses of the Importance of Bookkeeping”, PR Underground, December 4, 2013)