As an experienced accountant I have met many small business owners who have got themselves into a financial mess and although I enjoy a challenge and thrive on helping my clients, from a business perspective it’s always ideal to get your accounts in order from day one. This will keep things stress free and allow your accountant to do their job effectively.
With this in mind, here are my top tips on how to get your business ‘accountant ready’ so it’s smooth sailing all the way with your business finances.
Get Organised
The key to staying on top of your accounts is getting organised. Try to keep all of your invoices, receipts, bank statements, payroll records, and tax documents in one place. You might prefer to store these digitally online or physically filed in a folder. Whatever method you choose, keep it consistent and keep everything together. Always name your online files with the date and a keyword to make it easier to find them quickly if necessary. Organised and complete documentation helps your accountant to provide better financial advice, allowing you to make sound decisions that benefit your business’s financial health.
Gather Your Receipts, Invoices and Statements
At the end of the tax year, your business finances need to add up and make sense to your accountant and ultimately the HMRC. Gathering receipts, invoices, and statements is vital for your accountant to do their job because these documents are the key to accurate financial reporting and tax preparation. They will provide a detailed record of your business transactions, allowing your accountant to determine your income, track expenses, and identify deductions. Without these records, it becomes more difficult to ensure the accuracy of your financial statements, which can lead to errors in tax filings, missed deductions, and could even trigger an audit.
Other Documentation
As well as evidence of your incomings and outgoings, an accountant will need to have access to other documentation so it’s important to have these available to them when they ask. These documents could include correspondence from HM Revenue and Customs, your personal or business tax information, business financial records or logs, VAT returns and if you currently have any employees, your payroll records.
Communication
Regularly communicating with your accountant is important to ensure that you are both consistently working towards the same goals and you can uncover and address any issues before they become bigger financial headaches. Set up regular meetings with your accountant to discuss any changes to your business financial structure, ask questions and ensure you understand any upcoming tax obligations or find out if you can take advantage of any tax deductions due to you.
If you are reading this too late and your business finances have gotten messy, don’t panic. I specialise in supporting businesses and individuals in this situation and I can help you get back on track. Contact me here for a chat so I can learn more about you and your circumstances and work out how I can support you in the best way possible.
