A cash business nightmare; sink or swim!
I recently walked into a pub and approached the bar in the usual way. I then stood and witnessed the bar manager pay his colleague for the days shift in cash, straight from the till.
Alarm bells instantly started ringing. How is that being taxed? How is the cash being accounted for in the monthly bookkeeping records? Do they have an accountant, and if not why not?
In 2014 more and more cash businesses will continue to struggle the longer they continue to miss-manage their financial records. As professional accountants we support a large amount of cash businesses, but we do it in a way that is sustainable. We advise that every penny is documented so that the owner can see in black and white his/her profit and losses. Keeping good records is essential to avoid HMRC being able to challenge you. AIMS can help and advise you on cash controls and systems of recording.
We will pose questions like; are your margins right? Sometimes the objective view of your accountant can help you to see the wood for the trees, because the daily toil of running a cash business can be gruelling and not leave enough time to think about developing the business.
Your accountant can also look at how to minimise bank charges and evaluate whether your staff costs are in line with others in the same area and the same sector. And of course we can look at compliance. Your local AIMS accountant can assist with ensuring your systems are simple but effective ensuring you get the best from a wide range of services including on-line filing, RTI submissions for payroll and self-assessment tax returns.
Getting your ducks in a row where cash is concerned is an absolute must if you want to run a successful business, so let us know if you need a professional accountant that understands your business.
If you operate a cash business, let us know the problems that you face and we will let you know the best ways of dealing with them.