As an Amazon Affiliate Partner I earn from Qualifying Purchases

Bookkeeping can appear like a tedious and mundane mission for lots commercial enterprise proprietors that is why it’s not unusual place for lots to make errors with their bookkeeping. In fact, over 1/2 of of all small commercial enterprise proprietors fail to preserve their budget updated each month. With this in mind, right here are a number of the maximum not unusual place bookkeeping errors to keep away from.

  1. Poor report-keeping

When you’re a small commercial enterprise, each penny counts. Forgetting approximately small prices can reason havoc together along with your bookkeeping. It’s critical to hold correct information month-on-month, regardless of how small or insignificant your prices may appear to you. Keeping your bookkeeping updated also can offer you with beneficial economic statements. These come up with an image of in which your corporation is at and might play a massive component in commercial enterprise making plans going forward. If you’re uncertain the way to interpret your economic statements, talk with an accountant who can assist.

  1. Failing to lower back up your information

If you preserve guide information the usage of Excel or Google Sheets, it’s critical to lower back your information up daily. Not handiest on your very own laptop however additionally to a server or outside difficult drive. It’s additionally critical to lower back up your information in case you preserve your information digitally the usage of on-line accounting software program. Most on-line accounting software program will lower back up your information mechanically each 24 hours, however continually test together along with your software program issuer to make certain it’s far sponsored up at the least as soon as a day, preferably to numerous secure and stable locations.

See Our: Affordable Accounting Services

  1. Not monitoring reimbursable prices

If you pay prices from your private funds, it’s clean for those prices to be left out and pass unrecorded. It may sound like an apparent one, however many small companies overlook approximately those prices over time, ensuing in misplaced cash and overlooked tax deduction opportunities. Organization is prime in terms of your bookkeeping, so why now no longer create a corporation coverage concerning reimbursable prices?

  1. Throwing away your receipts

If you lose your receipts, you won’t be capable of workout any tax reductions. Again, this could sound apparent, however you’d be amazed at what number of commercial enterprise proprietors fail to preserve their receipts in an appropriate region or preserve a report of them. It’s first-rate to preserve virtual information of your receipts (you may even take a photograph of them and shop them to your laptop) and also you need to preserve them for at the least six years.

  1. Spending an excessive amount of time on bookkeeping

When you’re a small commercial enterprise, there’s a danger you could spend an excessive amount of time to your bookkeeping whilst instead, you may be spending that point productively elsewhere. This might be enhancing your current commercial enterprise providing or operating on a commercial enterprise boom plan. If that is something you could relate to, it is probably time to rent an accountant to perform your bookkeeping for you.

  1. Failing to place cash apart for VAT

If you’re a VAT registered corporation, you’ll ship invoices with VAT included. This cash need to now no longer be spent or reinvested. Your commercial enterprise need to continually set apart VAT to be paid to HMRC. Usually, VAT registered companies put up VAT returns and bills to HMRC quarterly. Charges for now no longer doing this could be as much as 15% of the unpaid VAT.

  1. Not inquiring for a VAT receipt

As properly as paying VAT on sales, you furthermore might want to preserve invoices and receipts from purchases made with the aid of using your corporation in which VAT has been charged. This will assist you reclaim the VAT detail lower back.

In order to do this, a legitimate VAT receipt or bill is required. Always test which you have acquired one – if now no longer request one (for a few gadgets under £25, VAT may be claimed lower back without the want for paperwork). There are unique regulations and guidelines on claiming VAT lower back and you can want to take recommendation in this from a professional accountant.

How Alexander & Co can assist

If your commercial enterprise is losing infinite hours on bookkeeping tasks, falling sufferer to the not unusual place bookkeeping errors we’ve simply mentioned, then our accountants can assist. We apprehend how frantic it is able to be juggling your commercial enterprise and your bookkeeping that’s why we offer Online Bookkeeping Services to address everything. This way, you could spend much less time to your accounts, liberating up time to hold and develop your commercial enterprise.

As an Amazon Affiliate Partner I earn from Qualifying Purchases