In submitting tax documents, you can’t afford to make mistakes. If you send these erroneous documents to the government, they might require you to provide a corrected version. The problem is when you keep submitting error-filled tax documents, the government will think that you are intentionally doing it.
As a result, you might get penalties in the form of fines. For repeated offences, it could result in the termination of your business licence. Before it happens, you need to do something about it. Here are the most common mistakes accountants make that you need to check.
Error of omission
It happens when some business activities slip through the cracks. You forgot to record some of the transactions. You might think that it is a small mistake that won’t have significant consequences. However, as you start seeing the final results, you will see that some figures don’t match. It does not only affect the documents you are submitting, but it could also change how you perceive the current financial status of your business.
Not reconciling the books
In accounting, it is crucial to reconcile the books with the bank account frequently to check accuracy. The records in your bank statements and the accounts need to match, otherwise it would be confusing. Imagine if you do not reconcile the accounts, and it is time to prepare the tax documents. You need to sort through all the records to find where the mistakes are and correct them. Instead of submitting your papers on time, there could be delays.
Not using the accounts to your advantage
When preparing the statements, you might only have the government requirements in mind. You forget that the accounts are also useful in helping you decide how to improve your business. You can get information regarding your current financial standing and make projections. You will know if you are doing well, or if you need changes to move your business in a different direction. It is a waste if you ignore this crucial information without using it to your advantage.
Failure to get updates in policies
There are policy changes all the time depending on the people running the government. Sometimes, the government tries to close the loopholes that some companies use to their advantage. You might not be among those companies, but you also need to understand the changes and integrate them in your next report.
These are only a few of the mistakes accountants make. You need to inform your accountant about these issues to avoid facing them.
If you can’t find the right accountant to do the job, you can partner with an accounting firm. They will provide you with quality accountants who know the details of preparing accounting reports, and other documents. They also work as a team. They will ensure that you will get the services you need. You can’t afford to make mistakes, so you need to start searching for an accounting firm. Check out www.gsmaccountants.co.uk for more details.