Early tax planning is the key to tax avoidance. You need to adopt the most effective way to keep the records of the business. Timely Bookkeeping is based on efficient storage and proper organization of the business's documents like a journal, ledger and financial statements. You can benefit yourself and your business by hiring an accountant for bookkeeping services in Croydon and VAT returns in Croydon, if the business is mainly located in Croydon.
Following are some reasons why you should have an efficient bookkeeping system in your business.
Save time, get your audit done quickly:
An average size company loses about four days in an audit. If you are a startup you may require about three days of an audit but never less than that. But, you can get the audit done in lesser time and you will be able to resume the business activities sooner than expected. There are several consultancies which offer bookkeeping services in Croydon to small and startup businesses on weekly basis as well. You can hire a professional bookkeeper to assist you for the purpose.
Avoid penalties and fines:
If you manage the books of your business yourself, you are more likely to face penalties and sanctions because it is difficult to keep a record of everything yourself. You basically provide HMRC little or no access to the business records if the books are incomplete; this is when HMRC jumps in and puts fine on you. However, if you hire an accountant for bookkeeping services in Croydon you will have efficient and complete records of the Croydon based business activities and you can avoid any fine or penalty.
Reduce tax, avail tax allowances:
You may overlook tax deductions; there are so many allowable expenses you can claim for your business from HMRC. But if you are doing it yourself you may overlook claimable expenses. An expert bookkeeper will let you know how many provisions are there to benefit you and by what way you can reduce your tax.
Pay what you owe:
We all know that we delay the tax calculation unless it’s the last day of submission of VAT return. If you are running the last day calculating the taxes, you are very likely to miss calculate. Keep your records align from the day one so that you can avoid any financial loss.
Keep an eye on the financial health of your business:
As soon as the business grows you tend to lose the grip on the expenses and incomes of the business. It is very hard to make the future decision if you do not have a firm grip on the financial position of the business. You can maintain a clear image of the business’s financial position if you hire a professional for bookkeeping in Croydon or to calculate and submit VAT returns in Croydon.