06 Aug What are Some Common Mistakes to Avoid as Quickbooks
Are you an accountant dealing with day to day accounting issues? Our business profits toolkit outlines some great benefits for small and medium-sized businesses. You’ll be needing the help of our high-end accounting software to save your business. Here are some common mistakes you must avoid to overcome challenges as accountants.
Take Care of your Books
Good record-keeping is essential to calculate business profits. That’s the area our QuickBooks accountants like to discuss. Poor records may result in sales or allowable expenditure.
Record your Business Income
The profit or loss will only be correct if you include all income. Include business income on an accruals basis to match the income to the period earned. Not all sources of business income will be immediately obvious. The income of the business includes scrap sales, contra sales, or barter arrangements. Some people even overlook cash sales.
Note all your Allowable Expense
Take care to include it at the correct value to ensure that the profit’s not overstated. We note all allowable expenditures. Permit expenses for business purposes. Specific prohibitions deserve attention for business entertaining. Review purchases and expenses.
Work on your Complex Areas
Where the business is one that holds stock, – this is the lower of cost and net realizable value. Errors will arise if stock is overlooked or valued incorrectly.
Work-in-progress can be a complex area and advice should be taken to ensure that the treatment is correct. Consider all the miscellaneous areas. Include a review of post-balance sheet events and consideration as to whether any adjustment to the accounts is required.
Staff costs should also be reviewed and the amount unpaid nine months after the end of the period should be added back. As far as directors are concerned, consider the date on which amounts are credited to the director’s loan account.
Additional Info: HMRC’s Business Profits Toolkit – see www.gov.uk/government/publications/hmrc-business-profits-toolkit.