Blog Why Health Checks For Your Accounts Are Important
By June 15, 2018on
Staying on top of every single responsibility as a business owner can feel overwhelming, but you can’t let anything slide – particularly not your accounts.
If you don’t frequently inspect them then this can result in negative consequences for your business, and you’ll likely miss out on some potential opportunities too. We’ve put together the three most important reasons for checking the health of your accounts regularly.
Ensures you’re not overspending
The ease of setting up direct debits means we don’t have to spend time doing transfers on a regular basis. But this is precisely the problem – because we don’t have to go through the process, it’s easy to forget the money’s going out.
You may not even require what you’re paying for anymore, or perhaps the direct debit is taken at a bad time – causing you to plunge into your overdraft. This can easily be avoided by checking your accounts frequently, viewing what your outgoings are and keeping note of when they’re taken.
Keeps you on track with taxes
With tax not needing to be paid until later, it’s easy to feel like the money coming in is tax-free. But it’ll need to be paid eventually, so sufficient funds will be required when the time comes around.
You can stay continuously aware of your tax liability by keeping on top of your taxes throughout the year. Doing this will be particularly beneficial when Making Tax Digital comes into force.
You’ll also need to have all the right figures in your accounts to calculate your tax correctly, otherwise you risk paying too much or too little. The former wouldn’t be beneficial for your business, and the latter could raise issues with HMRC.
Helps your business to grow
A health check is a positive step forward in assisting the growth of your business. It allows you to see all income and expenditure, helping to identify what’s proving effective and what isn’t. By tracking expenses, you can easily pinpoint which ones are eligible for tax relief, meaning there’ll be more funds available for growth.
You’ll also be able to recognise potential areas for savings, and you can compare the current state of the accounts to the forecast. This will allow you to see if the business is on track, and measure its performance.
As important as staying on top of money management is, you’ll have other elements of the business you want to focus on. Rather than doing the maths yourself, you can get help from an expert accountant like Bright Accountancy. We can do full, consistent health checks on your accounts, as well as any other accountancy and tax-related tasks you require.
To find out how we can assist, arrange a consultation by calling our team on 0161 669 4221, emailing firstname.lastname@example.org, or filling in our online contact form.