How To Keep Financial Records Accurate

By September 17, 2018Financial Records

For most businesses, keeping financial records accurate is fairly important. Whether you have deadlines coming up or want to use finances for planning, they must remain accurate. We have several tips on the best ways to ensure complete accuracy.

Coleman & Co work with all businesses and individuals in Lisburn. If you require financial advice and want to keep financial records accurate, we can always assist.

Avoid Using Cash

Recording your finances can be a particularly tricky process, especially if you are unsure when finances are being used. Avoiding cash is often good advice as it means all transactions and recorded in bank statements and transactions. If your business regularly has cash out, it can mean you are unsure what cash has been spent on and also how much cash is leftover.

Cash may be used to purchase milk for coffees or ice lollies on a hot day. However, you should try to avoid using cash where possible, even if this means cutting down on treats. This will ensure financial records are kept accurate throughout the year and cash is not lost on small purchases.

Completing Tax Obligations

Rather than estimating your tax returns at the end of each year, monitoring tax regularly maintains the accuracy of financial records. You should always record tax returns throughout the year, ensuring the correct payments are made to the HMRC. Both business tax and tax deducted from your staff’s pay should be recorded all year round.

Failure to record taxes could lead to final tax returns being incorrect due to estimating certain costs. By recording tax returns throughout the year, this process is made much simpler and eases the pressure on accurate finances. You are less likely to make errors and therefore will avoid any potential fines.

Your business must record tax payments throughout the year from payroll and other transactions. This will always give you the financial records you need to maintain accuracy for all annual accounts.

Use Accounting Software

Whilst manually recording transactions and financial records is manageable, using accounting software can simplify this process. Accounting software ensures that all transactions and finances are recorded easily and can be used in the future. There is also a reduced amount of errors as accounting software will maintain accurate financial records.

Accounting software can also help with a range of other financial features and as it reduces errors, the accuracy of your finances will often improve. You should use the best accounting software for bookkeeping, payroll and other financial needs for maximum accuracy regarding all transactions.

Check For Errors

You may think all finances are completed perfectly first time. However, regularly checking for errors in balance sheets and cash flows could resolve many issues. This may not even be in the finances you’ve recorded but your actual business transactions. If you notice a cost or income that seems higher or lower than usual, checking for errors can provide a quick solution to maintain the accuracy of financial records.

Your finances cannot always be kept completely accurate and you should always be prepared to amend any possible errors. Any errors could have a knock-on effect for end of year accounts and tax returns. It is important bookkeeping is completed effectively throughout the year to avoid any finances and checking for errors can assist with this.

Contact Us

If you would like more information on the services we have available in Lisburn or advice on how to keep financial records accurate, contact Coleman & Co today. We can always give businesses the assistance they need regarding any issues. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

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