Since HMRC launched its new Business Record Checks programme in 2012, SMEs have been given another reason to ensure their bookkeeping is resolute. It’s hardly a proposition to relish in any situation but, with sound procedures in place and the help of a professional accountant, it’s not something that needs to keep business owners awake at night.
What does a Business Record Check entail?
Companies subject to a check will initially be contacted in writing, and this will be followed by a phone call from HMRC, during which business owners are quizzed on such matters as how they maintain records. If answers are satisfactory, HMRC will leave the matter there, but any doubts will be followed by a visit to the company and, if recordkeeping is still found to be lacking, the imposition of deadlines to get it right and penalty fares should they not be met.
It may sound like a dreaded situation, but there’s really no need to fear the call, especially if you have a professional outsourced accountant at your side.
Starting on the right foot
The first thing it’s important to note is that not all HMRC checks are random; they are often triggered by abnormalities in accounts flagged up by the organisation itself. The best way to decrease the likelihood of a check in the first place, therefore, is to ensure that books are kept accurate and up to date.
By outsourcing accounts, business owners can leave the matter in professional hands and increase their own focus on growing and developing their company – a challenge the vast majority prefer to poring over their books.
Professional representation
Should your business require a visit from the authorities, HMRC’s website specifies that owners are welcome to have a professional advisor present. In most cases, this will be an accountant, making another reason why outsourcing finance is a shrewd decision.
Many business owners find accountancy a difficult and laborious process and, even when they get it right, they might struggle to explain how they do it. A finance professional can give a well-informed overview of a company’s financial practices that’s more likely to convince investigators, especially since it comes from outside the company itself.
Company owners should note that using an accountancy service does not absolve them of the responsibility should something go awry, making it all the more important to choose a professional service like Sollertia. Should you have any problems or concerns, your outsourced accountancy team will only be a phone call or email away, helping you to clear up any matters before the taxman visits.