10 Bookkeeping Errors For Small Businesses To Avoid
1. Not saving receipts for small expenses: A common mistake for small businesses is not to keep receipts for small business related expenses. These receipts provide important backup for proving expenses claims and for claiming vat and can be the cause of much anguish by auditors and revenue inspectors.
2. Failing to file online revenue returns on time: Filing revenue returns on time and correctly is the best way to avoid a revenue audit. Continual late filing or problems with the way returns are calculated raise suspicion and can trigger a revenue audit.
3. Not filing accounts with the CRO on time: Small Companies who file their annual returns on time with the Companies Registration Office can avail of the audit exemption which means they do not have to have their accounts audited and signed off by a registered auditor. Filing late excludes you from the audit exemption and results in an audit being required which is a lot more expensive.
4. Failing to Reimburse Expenses: Many Small Business owners and Sole Traders pay for expenses using their credit card or cash. Many of these expenses are forgotten about and failed to be submitted to the company for reimbursement.
5. Not Deducting Sales Tax: A mistake commonly made by businesses especially small retail businesses is not deducting VAT from the total sales figure. This overstates sales and profits and can give a false picture of the company's actual performance.
6. Incorrect Calculation for VAT: Not all VAT on expenses can be reclaimed and claiming VAT when it is not permissible will lead to issues in the event of a revenue audit. A common mistake is claiming VAT on something without a VAT invoice. A clear breakdown of the VAT charged on a purchase invoice is required by revenue.
7. Incorrect PRSI Class: When processing Payroll it is necessary to have each employee set up correctly on the Payroll System. Incorrectly entering employees PRSI Class is the most common error.
8. Not keeping accurate books: It is essential, now more than ever for business owners to have an accurate idea on the performance of their company. This allows them to make decisions with up to date information and gives them the power to act immediately to protect their business.
9. Misusing Cash: Many small businesses often use cash without keeping accurate records. Light regulation can lead to misuse and the business can be vulnerable to theft.
10. Not hiring a professional bookkeeper soon enough: Mistakes made my some business owners preparing their own books and revenue returns can turn out to be very costly. An experienced bookkeeper ensures that the job is done correctly and avoids unnecessary expense.
1. Not saving receipts for small expenses: A common mistake for small businesses is not to keep receipts for small business related expenses. These receipts provide important backup for proving expenses claims and for claiming vat and can be the cause of much anguish by auditors and revenue inspectors.
2. Failing to file online revenue returns on time: Filing revenue returns on time and correctly is the best way to avoid a revenue audit. Continual late filing or problems with the way returns are calculated raise suspicion and can trigger a revenue audit.
3. Not filing accounts with the CRO on time: Small Companies who file their annual returns on time with the Companies Registration Office can avail of the audit exemption which means they do not have to have their accounts audited and signed off by a registered auditor. Filing late excludes you from the audit exemption and results in an audit being required which is a lot more expensive.
4. Failing to Reimburse Expenses: Many Small Business owners and Sole Traders pay for expenses using their credit card or cash. Many of these expenses are forgotten about and failed to be submitted to the company for reimbursement.
5. Not Deducting Sales Tax: A mistake commonly made by businesses especially small retail businesses is not deducting VAT from the total sales figure. This overstates sales and profits and can give a false picture of the company's actual performance.
6. Incorrect Calculation for VAT: Not all VAT on expenses can be reclaimed and claiming VAT when it is not permissible will lead to issues in the event of a revenue audit. A common mistake is claiming VAT on something without a VAT invoice. A clear breakdown of the VAT charged on a purchase invoice is required by revenue.
7. Incorrect PRSI Class: When processing Payroll it is necessary to have each employee set up correctly on the Payroll System. Incorrectly entering employees PRSI Class is the most common error.
8. Not keeping accurate books: It is essential, now more than ever for business owners to have an accurate idea on the performance of their company. This allows them to make decisions with up to date information and gives them the power to act immediately to protect their business.
9. Misusing Cash: Many small businesses often use cash without keeping accurate records. Light regulation can lead to misuse and the business can be vulnerable to theft.
10. Not hiring a professional bookkeeper soon enough: Mistakes made my some business owners preparing their own books and revenue returns can turn out to be very costly. An experienced bookkeeper ensures that the job is done correctly and avoids unnecessary expense.
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BookSmart, 3 Clanwilliam Terrace, Grand Canal Quay, Dublin 2.
Call: 01 - 485 3593 or 087 287 5464
For more information on our services please visit our website
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http://EzineArticles.com/?expert=Peter_R_DavisBookSmart, 3 Clanwilliam Terrace, Grand Canal Quay, Dublin 2.
Call: 01 - 485 3593 or 087 287 5464
For more information on our services please visit our website
Article Source: http://EzineArticles.com/7489646
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