Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Saturday, September 24, 2011

44% of businesses have poor accounting records

Business owners beware – after a very successful pilot scheme HMRC has decided to carry out a further 12,000 business record checks in the current financial year.  Recently established businesses are most likely to be approached and a further 20,000 checks are planned for the next financial year.

Results of the pilot scheme showed that a massive 44% of businesses had issues with their record keeping and 12% had seriously inadequate records and could face penalties of up to £3,000.

For years Insight Associates been extoling the virtues of good record keeping to understand your financial position and to make good business decisions.  From HMRC’s perspective good records are also an indication of how likely they are to receive the correct amount of tax – so it’s in their interest to notice inadequacies.

In brief you should pay particular attention to sales/purchase invoices, receipts, petty cash and general expenses.   We’ve covered many of these topics on the Business Hub Radio show and you can read the articles and listen to our podcasts here

For more in-depth advice or details of our accounts audit procedure contact me, Garry Mumford, directly.

Sunday, September 11, 2011

Watching supplier bank details

Whilst businesses will be vigilant and careful with making payments over the Internet, using their banks Internet Banking offering, how many times do you actually consider if the bank details you are using are correct?

Just think how easy it could be to get those details wrong, or for them to be changed without you being aware and your payment ending up in the wrong place, or worse!

An interesting scam that has become increasingly common recently is for a fraudster to request that you change an existing suppliers bank details so that payments get directed to him/her!  A simple telephone call, or maybe an e-mail might innocently get acted upon and before you know it your cash is lost to fraud.

This is becoming such an issue that recently we have noticed some of the banks posting notices on their systems warning customers about it.

Ensure therefore that you put the necessary checks in place to be certain that all requests to change a suppliers bank details are genuine. We would suggest only accepting changes from the company in writing on their letterhead and not verbally or electronically. You really cannot be too careful.  It might also be worthwhile regularly checking that the bank details that appear on suppliers invoices agree to those that you use when making payments.

Insight Associates, Insight House, Riverside Business Park, Stoney Common Road, Stansted Mountfitchet, Essex, CM24 8PL, UK
Tel: +44 (0)1279 647447 Fax: +44 (0)1279 814512
Insight Associates is a trading name of Financial Catalysts Limited. Registered in England and Wales Number: 5670047. Registered Office as above. Disclaimer | Cookies