Most businesses tackle bookkeeping themselves because they think it will take less time and be more cost-effective. However, it might be better to work with an accountant. Accountant Epsom companies often realise their mistakes after it’s too late, which can lead to significantly higher taxes and other concerns.
Though you might be paying extra penalties or tax, you also won’t be getting appropriate numbers, which are crucial for your business decisions.
Incorrect Entries
A common error for business owners is entering the wrong data, such as amounts, dates, and categories for specific costs. One simple mistake could be problematic if you’re using a connected bank and accounting software. Your app might be listing the receipt as another cost, which will throw off your entire game.
Not Checking Accounts Receivable and Payable Reports
The easiest way to ensure you have the right information is to bring up your Accounts Payable report to show what you owe on each day. However, adding the wrong information will lead to negative figures and other headaches.
Entering Assets as Expenses
Items are treated as a business asset if they:
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Have a higher value (such as over £200)
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Last longer than one year
You should be adding those to the asset category instead of the expense section.
What to Do Instead of DIY
In most cases, it’s best to hire an accountant. Epsom residents and business owners will find that the information is correct and can be checked throughout the year. This makes it easier during tax time. David Beckman & Co Ltd is an excellent asset and can assist with your needs. Call today on 01737 844 322!
Are you experiencing bookkeeping errors? It’s wise to hire an accountant. Epsom residents and company owners can learn more by clicking here.
