Making sure that your bookkeeping is up to date might not be at the top of your priority list, but it is important. Keeping your accounts up to date gives you and your accountant the information you need to check on your business’s health. Even if you’re good at keeping on top of your records, could you still be making one of these common bookkeeping errors? Read on to find out.
Not checking your bank statements and feeds
Keeping your account books up to date with details of payments is essential, but it’s only one part of the picture. You need to ensure that the incomings and outgoings you’ve detailed in your records match what’s happening in your bank account.
Every month, check your bank statements to ensure they match your books. If your accounting software provides bank feeds that automatically download transactions to your account, check that these match your bank statements.
Not checking for duplicates
You can make a duplicate payment for many reasons, especially if an invoice is delivered in more than one format. Having a centralised point for invoices to be paid can help, but checking for duplicates is still important to ensure you haven’t paid the same invoice twice.
The best approach is to have checks in place to ensure they don’t happen in the first place, but spotting them and acting quickly is the next best thing.
Not reconciling your wages, PAYE, pensions and loans
Reconciling your wages, pensions, PAYE, and loans ensures that you’ve paid your employees the right amount in wages and pension contributions and kept up with your loan payments. Errors when you pay your staff can be time-consuming and lead to adjustments in PAYE deductions.
It also helps you pay the right amount to HMRC. No one wants to be on the receiving end of an investigation simply because you didn’t account for tax relief on your business loans properly.
Not using the right software
Using accounting software can help to prevent common bookkeeping errors by making it easier for you to centralise payments and keep accurate records.
It’s also crucial that you use the right software for your business. When choosing software, look at each product’s features and consider whether these reflect how you work so that it can fit easily in your day-to-day work and give you accurate records.
Not using a professional
A professional bookkeeper has been trained to keep your records accurate and up to date. They’ll also ensure that your bills get paid on time so you won’t attract late payment charges or have your credit rating affected by an overlooked invoice.
If you make a mistake, it can be costly to correct, either because of additional fees or simply the time it takes you to sort things out. A bookkeeper can help you avoid unnecessary stress.
We offer bookkeeping and accounting services that help you avoid these common bookkeeping errors and keep everything up to date.
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