How certain are you that every aspect of your financial management is legally compliant?
Are you cross-your-heart-and-hope-to-die, 100 percent sure? Reasonably confident that you are probably doing the right thing? Or no idea, stab-in-the-dark and cross your fingers hope they are okay?
As a business owner, you should be confident that you are meeting all the legal requirements related to your finances. Failure to do so could result in financial penalties, missed opportunities, or potentially even legal action.
It all sounds a bit scary when we put it like that, doesn’t it?
Luckily, we have lots of wisdom for you in this very area.
Read on to find out why this is one area you really don’t want to take chances with.
Are Your Finances Legally Compliant?
Record Keeping
Did you know that you should retain all your tax records for seven years? Yes, it seems like a long time to hold onto all that paperwork. However, if Inland Revenue audit you, you will need to present them.
Whether you keep physical or digital records, make sure you have a secure, safe place to store things like invoices, receipts, bank records, vehicle logbooks, petty cash records, wage books, and asset registers.
If you don’t have these records and are audited, it will make life a lot more stressful!
Claiming Expenses
As a small business owner, there are many expenses you can claim back at the end of the financial year. However, the rules and details of these can be extremely complicated. Claims vary if you work from home, have a company car, or travel.
If you don’t understand what you can legally claim, you may be robbing yourself of a considerable amount of money. Conversely, claiming for the wrong things could see you in hot water. Your best bet is to consult an accountant or experienced bookkeeper for clarification.
Personal Liability
Are you personally protected if your business gets in trouble?
Whether it’s your fault directly or not, you are the one that could face penalties such as a fine or even imprisonment if your business fails to meet its legal obligations. It’s up to you to protect yourself, your staff, and your business. Be proactive about the legal fine print related to your industry.
Getting Expert Advice
As a busy business owner, it’s unlikely you will have time to seriously study the various legal acts related to your entire business. From employment and wage legislation to tax compliance and GST – there’s a lot to absorb.
Rather than try to wrap your head around it all yourself, consult with your bookkeeper and/or accountant. They have spent years studying the legal requirements related to their industry and can ensure you are on the right track.
Keep Your Finances Accurate And Up To Date
If your finances are disorganised or out of date, how can you be sure that they are accurate, and therefore compliant? Without precise, up to date data, you and your accountant won’t be able to get a clear picture of the finances, let alone be certain you are meeting your legal responsibilities.
One of the best ways to do this is to use the combined forces of an online accounting system and a bookkeeper. That way, you can be certain that you can lay your hands on any records that you need at any time and your bookkeeper will ensure everything is accurate.
As a business owner, you have an obligation to maintain accurate records and submit them to the appropriate government agencies as required. The best way to do this is with top-notch bookkeeping. If this is something you don’t have time for – or isn’t one of your strong points – investing in a bookkeeper is a smart decision.
If you want to know exactly how a bookkeeper can help keep your business legally compliant, then get in touch with us here at Admin Army today.