Small business owners noticing a pick-up in trade this year are being urged to get on top of their bookkeeping affairs so they don’t run into trouble down the line.
Efficient monthly bookkeeping is crucial for businesses not matter how small you are.
We regularly take over bookkeeping when it has been done by the business owner for years and notice overpayments of tax that could have been picked up by a more regular, accurate bookkeeping system.
A classic example occurs around VAT because lots of businesses don’t know that they can pay on cash receipts’.
Companies with turnover below €1.25m are allowed to account for VAT on a Cash Receipt Basis, and therefore can wait until invoices get paid before paying VAT owed.
If a company faces 5% of its invoices going unpaid, then it could end up overpaying VAT by €14,000.
This overpayment can be claimed back but often businesses are unaware of how to go about this.
As well as avoiding paying too much tax there are lots of other benefits to getting on top of your bookkeeping or outsourcing it entirely. Regular, accurate bookkeeping will provide you with any warning signs you need.
It will shine a light on any costs getting out of control, profit margins dipping etc.
TaxAssist Accountants have published a guide on their website outlining their top ‘7 bookkeeping mistakes to avoid’ which can be downloaded for free.
We are also offering free consultations to new clients please contact our office on 05786-82285 to make an appointment.