Everyone in business, no matter how big or how small, has to keep some form of bookkeeping. The problem is, it’s like the washing up – it’s never finished!

I wonder how many people sit at a desk or kitchen table late into the night writing up the books, probably for the whole quarter, just because the VAT return is due? I wonder how many business owners dread the thought of bookkeeping?

Are you or do you know someone who is a member of “the late-night bookkeeping club“?

The problem

It’s been a busy week running the business. Perhaps there are feelings of being under pressure. Everyone is fed up with the weather, and moaning about the recession. Suddenly there’s the realisation that the VAT return is not due next week, but this week! The only time left to do it is in the next few evenings.

The rush

So, the records have been gathered together, along with bills, invoices, bank statements, and cheque stubs, and they are whisked home and set up in the “home office”. Sitting on the sofa, a glass of wine in one hand, the TV remote in the other, the task is started. You’re convinced that “this is what true business people do” and “it’s great that I can work and interact with the family at the same time.”

The result

Aside from the whole family being fed up with having no quality time, and the fact that it will take at least three times longer to get the work done late at night, because you are tired, and the home office sometimes just doesn’t function as well as it should, the real problem is that of errors and poor bookkeeping.

A VAT inspection

I was speaking with a VAT inspector recently while he was conducting a routine visit on one of our clients. He was explaining how the VAT and HM Revenue and Customs inspectors are all now working together, and that many of the limits for genuine errors and mistakes have been raised, taking away some of the red tape in dealing with relatively small errors.

He then went on to say that where he finds a business with good quality bookkeeping, his confidence level is lifted, and it enables him to complete his review more efficiently and leave the premises within just a few hours. However, his duty, should the record keeping be poor, was to dig deeper until he was satisfied that what was being declared was accurate. Simply put, he said that poor bookkeeping gives HM Revenue and Customs even greater reason to look much more closely at the business owners, with obvious links to not just VAT, but PAYE, income, and the corporation tax departments.

“We don’t want problems, we want solutions…”

At Prime Entry we have several solutions on offer:

• Use our bookkeeping bureau service, offering fixed-price bookkeeping
• Try our easy-to-use bookkeeping software, with full support and training available
• Speak to us, and see if we can help to train you to improve the use of your existing systems
• Improve your time management – maybe help is needed to identify a strategic business plan
• Perhaps you need some help just getting life organised and gain some better focus. If you play sport, you need coaching, so why not invest in a coach for your business and life in general?

So the message is…

If you are in business, or know someone who is, remember that bookkeeping is very important, and that the penalties for getting it wrong are about to get tougher.

At Prime Entry we specialise in bookkeeping, so why not call us to see if we can work with you, or if you know someone who you think may need our help, please feel free to recommend them to us.

For more information, contact us.

Kind regards,

Kevin Whitehouse
01747 826989
kevin@primeentry.com