Bookkeeping

We try and make like easier for all our clients. You can send us all your records via:

• Secure Email
• By post
• Arrange for one of our staff to pick it up

When submitting your documents we need the following from you covering the period:

• Bank Statements
• Invoices
• Purchase Receipts

Your fees for bookkeeping will vary depending on your record-keeping methods, the number of transactions on a regular basis. At Muhit & Co, we tailor our approach to your business, we always start by gaining a thorough understanding of you and your business. We can offer fully inclusive pricing that will cover everything from accounting and tax to tax investigation to legal support and more.

Our advice is that your bookkeeping should be as regular as possible. Doing it only yearly, quarterly or even monthly can create several issues and problems:

• You have too much bookkeeping to do at once, which is both tedious and time-consuming
• Your accounting records will not be up to date, which can cause delays with reporting or answering basic financial questions
• It becomes harder to remember what different transactions refer to
• Finding invoices is much more difficult
• You won’t have up-to-date data readily available to analyse your performance and plan ahead
• Your accountant will not be able to give you reliable tax estimates because your accounts will not be up to date

This is something you can do yourself, but outsourcing it will save you a vast amount of time. It also ensures items are accurate while optimising your tax returns. By doing your bookkeeping for you, we can maximise your tax relief, and make sure you avoid any fines for poor record-keeping. If HMRC ever did inspect your accounts, you would then have carefully formulated records.

There are no specific penalties for bookkeeping, but, if you do not keep adequate records for your business, you may end up with a fine of up to £3,000 for poor record-keeping. If your bookkeeping is inadequate, you could end up with other errors in your records.

For example, if you reclaim 20% for an invoice that is not actually tax allowable, this would show up on your VAT return. That could then mean you having to pay a fine from HMRC for reporting your VAT inaccurately. The same applies to other taxes and returns.

Bookkeeping is one of the most important processes your company will carry out, because all other processes depend on it, including:

• VAT returns
• Annual accounts
• Corporation tax checks

Most accountancy systems will only produce accurate accounts if there is a solid and reliable bookkeeping process underpinning them.

Bookkeeping describes the processes for recording financial transactions, including:

• Sending out and processing sales and purchase invoices
• Matching bank statements to sales and purchase invoices
• Matching your software bank statements to physical bank statements
• Matching outstanding sales to client statements
• Matching outstanding bills to supplier statements
• Inputting journals for bills paid in advance or arrears
• Keeping records of your company’s transactions