Is your VAT return taking too long to complete?

Through my work with small and medium-sized enterprises, I've found that lengthy VAT return processes almost always stem from inadequate bookkeeping practices. When financial records lack regular attention and consistency, a number of complications inevitably arise:

1.        Infrequent updates create blind spots.

Many businesses that outsource their bookkeeping only update their records quarterly. This creates a significant lag in financial visibility. Bookkeeping should ideally be updated once or twice weekly. Regular, frequent updates make the process easier to manage and give you a real-time understanding of your financial position.

2.        Technology gaps lead to inefficiency.

Some bookkeepers aren't leveraging modern accounting software and automation tools. Today's technology, including receipt scanning and automated data entry, dramatically improves efficiency and reduces human error. If your bookkeeper isn't using these tools, you're likely spending more time and money than necessary.

3.        Some outsourced bookkeepers may lack business context.

External bookkeepers often manage multiple clients, which means they may not fully understand your business's unique nuances and workflows. This can lead to misclassifications and missed details that someone with intimate knowledge of your operations would catch.

4.        Growth can outpace capacity.

What worked when you first started your business may no longer be sustainable. As your business expands, bookkeeping inevitably becomes more time-consuming. Many owners find themselves pulled away from their core strengths and the activities that drive revenue. This can be a costly distraction.

5.        The real cost of falling behind

When bookkeeping isn't kept up to date, your financial reports become unreliable. You can't make informed decisions about cash flow, debtors, or creditors. This uncertainty is where businesses run into serious trouble.

The good news? When your bookkeeping is maintained properly, tasks like VAT returns become straightforward, taking 30 minutes rather than hours of scrambling to piece together information.

At Hale Portfolio, we're a small, dedicated team that works closely with our clients to deliver exceptional bookkeeping services. We pride ourselves on building strong relationships that allow us to understand the unique nuances of your business and provide personalised support. Deb and Sarah handle our day-to-day bookkeeping, with Caroline providing strategic insight and guidance whenever needed. If your business, or one you know, could benefit from this level of attentive service, I'd love to hear from you.