Taxman paying closer attention to accounts
The Tax Man (HMRC, formerly known as Inland Revenue) is planning to pay closer attention to the accounts of millions of SMEs (small medium enterprises) that may gave poor record keeping, and, as a result, possible errors and undeclared or unpaid tax.
Poor book-keeping is therefore a greater risk for businesses now than before. What can be done? For a start those SMEs that consider themselves at risk ought to ask themselves and their book-keepers, accountants or advisors whether they are really up to scratch. Improved record keeping should please the business, the owners, the taxman, HMRC and the bank! Moreover, the businesses will benefit from improved financial management, which should help them survive for longer and hopefully prosper in these challenging economic times.
Bookkeepers and accountants track transactions and details of all financial activities. This requires good attention to detail in order to report accurately the accounting transactions of a business, including: details of all bank payments and receipts, sales, purchases, billings and cash flows.
If you need help with your accounts and accounting records in terms of what must be recorded, the best way to record it and report it, then contact us. The cost of poor record keeping and poor financial management is an increased risk of having to pay penalties, in addition to losing focus and taking poor business decisions.
What’s more Companies House has reported that over 11% of annual accounts filed (submitted) between January 2010 and June 2010 was rejected, often as a result of mistakes or omissions. This increases the risk of having to pay a filing penalty. |
Poor record keeping and financial management
