Most small businesses’ books are not perfect. One error can cause much bigger problems than the error itself once it’s been left uncorrected for months.
Spotting Mismatched Bank Reconciliations
As an accountant goes through the bank statements with your records line by line, he will come across transactions that were recorded incorrectly or even missing. Small errors can cause a lot of harm over time and should be detected immediately.
Correcting Miscategorised Expenses
Misclassified expenses are common and easy to occur. When an accountant carries out a review of your accounts, all expenses will be correctly reclassified. The financial reporting for small businesses requires the correct classification of expenses for tax purposes and for other compliance purposes.
Fixing Duplicate or Missing Entries
Accountants can also identify errors caused by duplicate invoices or missing transactions in order to fix them in your books and get your figures back on track.
Catching VAT Recording Errors Before They Cause Problems
Your accountant will check that all VAT transactions have been recorded with the correct VAT rate, also that transactions recorded as VAT inclusive have not been recorded as exempt from VAT.
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Putting Systems in Place to Prevent Future Errors
They will set up a system of simple controls to ensure that the error does not re-occur, for example a system of monthly bank reconciliations and simple categories for expense claims.
Your accounts will always be more up to scratch if someone thorough and methodical is regularly checking through them.