Accounting records – keep it clean
There is nothing more likely to attract interest from HMRC than an “untidy” set of accounting records.
As a business owner there is an onus to keep proper and correct accounting records, but likewise business owners have to balance this requirement with ensuring that the business operation continues and profit is crystallised. Here are some tips on how to keep HMRC happy, minimise risks of enquiry/cost and play to someone’s strengths;
– keep your paperwork organised and filed
– allocate time to get your paperwork in order on a frequent basis
– consider what type of accounting system both works well for you and your accountant
– separate your personal and business financial affairs, try and keep a wall between the two
– consider outsourcing – is it affordable, is your time better spent at the coal face
– ensure that control measures are in place in terms of the key elements of your business – cash, debtors, creditors, work in progress, margins
Being in business is a balancing act and it’s best to identify what you are good at, and if there are areas where you require help then find someone who can assist.