Accounting is an essential part of running any business, but it can be a complex and time-consuming task. This is especially true for small businesses, which often don’t have the resources or expertise to manage their own accounting in-house. As a result, many London businesses make common accounting mistakes that can cost them time and money.

The most common mistakes:

1. Not keeping good records: This is one of the most common accounting mistakes that businesses make. It is important to keep good records of all your income and expenses, so that you can track your financial performance and make informed decisions about your business.
2. Not claiming all of your allowable deductions and credits: There are a number of deductions and credits that businesses can claim to reduce their taxable income. However, many businesses are unaware of all of the deductions and credits that they are eligible for.
3. Not paying their taxes on time: It is important to pay your taxes on time to avoid penalties and interest charges. However, many businesses struggle to keep up with their tax payments, especially during busy periods.
4. Not having a proper accounting system in place: A good accounting system can help you to track your income and expenses, generate reports, and stay compliant with tax laws. However, many businesses don’t have a proper accounting system in place, which can lead to errors and omissions.
5. Not hiring a qualified accountant: A qualified accountant can help you to avoid all of the above mistakes. They can also provide you with valuable advice on how to improve your financial performance and reduce your tax liability.

How to avoid accounting mistakes

There are a number of things that you can do to avoid making accounting mistakes:

• Keep good records of all your income and expenses.
• Claim all of your allowable deductions and credits.
• Pay your taxes on time.
• Have a proper accounting system in place.
• Hire a qualified accountant.

How Cornerstone Accountancy, your local accountant can help

The team at Cornerstone Accountancy are qualified experts, who will help you to avoid accounting mistakes in a number of ways. We can:

• Ensure your business structure is the best for your circumstances
• Set up a proper accounting system for your business.
• Train you and your staff on how to use your accounting system effectively.
• Keep track of your income and expenses for you.
• Calculate your tax liability and prepare and file your tax returns.
• Provide you with advice on how to improve your financial performance and reduce your tax liability.

Get in touch

If you are a London business owner, it is important to avoid making common accounting mistakes. A good local accountant can help you to do this and save you time and money. Contact Cornerstone Accountancy today to find out how we can help you with your accounting needs.