The MD who said this is absolutely right – if you keep your bookkeeping up to date as you go then your year-end accounts process should take care of itself.
The MD in question does most of her own bookkeeping but then she would ask the accountants to complete the year-end.
They would take their time to do a bunch of opaque stuff and then present her with numbers she didn’t entirely understand.
And a bill!
It doesn’t have to be this way
Cloud accounting makes it easier but (whisper it) this has always been the case and it’s as true for the one-person business as it is for a multi-national group.
By keeping your bookkeeping up to date you will know:
- how much money your business has
- how much profit you’re making
- how much you can pay yourself
- who owes you money and who you need to pay
You can be on top of how much tax you need to pay and quarterly VAT returns will be a simple task rather than a last-minute nightmare.
Year-end accounts adjustments become in-year adjustments
In fact, they disappear, with the possible exception of a final tweak the amount of tax you need to pay.
So don’t let your year-end accounts become chore. Keep your bookkeeping up to date and the year-end should take care of itself.