New Businesses Should be Aware of the Importance of Keeping Suitable Records to Avoid HMRC Penalties, Says Leading Accountancy Firm

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Tamworth –  13th May, 2013 –  Midlands accountancy firm Adams Moore has urged new businesses and SMEs to implement good practices when it comes to book keeping, to avoid penalties from HMRC which could be imposed if records aren’t adequate. HMRC’s Business Record Checks (BRC) programme is well in force and businesses should be mindful of their record keeping duties.

Whilst there are no set rules on how business records should be kept, HMRC can impose fines for unreadable, inaccurate or incomplete records. In addition, HMRC has been stepping up its efforts to ensure businesses are keeping adequate books, and Tamworth accountants Adams Moore says implementing simple book-keeping practices on a routine basis should be seen as important and not just for tax purposes.

Adams Moore partner Neil Lancaster said: “Good book-keeping within business doesn’t just serve to satisfy the tax man, but is a huge asset in keeping track of business expenditure, evaluating your business profitability on an on-going basis and makes life easier when dealing with your accountant. Giving your accountant thorough records, with plenty of time to go through them, will mean returns are filed in time and won’t incur any late penalties.”

Businesses are selected at random by HMRC for the BRC and the process involves a variety of steps to measure whether a business is keeping records properly. Those who are deemed to require improvements in their book-keeping will be subject to further checks and a visit from a HMRC officer.

Lancaster added: “Once the habit of keeping good records is formed it’s easy to continue and doesn’t have to involve expensive or complex software. It can be done on paper or electronically. More hassle, time and even expense can be incurred for a business subject to a HMRC  Business Records Check.”

Adams Moore offers clients a variety of regular accounting services, as well as high-level support services such as Board Support for Owner-Managed businesses, which provides a service similar to an in-house finance director, for a fixed fee. The Business Protect service offers a variety of financial checks on customers and suppliers to reduce business risk. Companies looking to switch accountants should be thinking about what level of support they need for their business, and whether their current or new provider can offer these.

Adams Moore offers accountancy and business advice in Birmingham, Tamworth and throughout the whole of the West Midlands. For further information visit www.adamsmoore.com or call 01827 54944.

ENDS

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