This is a question that rears its head from time to time here in the office. My initial reaction is “Why not?”.
Occasionally there is a reasonable reason for the lack of evidence of someone’s business activities. It may be that the business has grown really quickly and they haven’t been able to keep up. They may have only just started the business and don’t know the first thing about bookkeeping and are seeking help. Sometimes there has been a known disaster such as a major flood or a fire. However, sometimes a person thinks they are being clever in deliberately not keeping records so they pay little or no tax.
My reaction to this question will completely depend upon the circumstances as to why a business owner has no records. If it is genuine, I will move heaven and earth to help them reconstruct whatever is missing or destroyed and will then stand with them, side by side during a tax investigation, if necessary, to explain what and how we have done the reconstruction.
I will never act for a client who chooses not to keep adequate records of their business activities. I deal with HM Revenue & Customs all the time and I will never put my professional reputation on the line for any shady character. Unfortunately, there are accountants who will deal with these people and if they get away with it for a few years before HMRC catch up with them they broadcast their cleverness all around the area. This can make genuine, honest people doubt that what they are doing is right if this character gets away with it. The flip side is that they are always found out. It may take 1 year or 20 years, but they will be called to account eventually. With all the resources of HMRC and the bounty offered to anyone who shops these characters, they never get away with it.
Ignorance of the law has never been an excuse for lack of records. Anyone in business knows they may have to pay tax and should inform the authorities when they start their business. These days there is an unprecedented level of help, information, advice, packages, coaches, accountants, bookkeepers, marketers and consultants both paid and free for the new and established business owner alike.
So… if in doubt about any aspect of business or the requirement for keeping records - ask!!
Should You Panic If You Have No Books To Give Your Accountant? - To learn more about this author, visit Ray Stewart's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
 The Benefits of Hiring an Accountant
|
| |
If you are good with math and numbers, it may seem logical to do your own bookkeeping. After all, your books are nothing more than an accurate depiction of the money that flows through your company. If your checkboo...
|
|
Choosing An Accountant For Your Business
|
| |
Choosing the right accountant for your business can be one of the most difficult tasks you need to complete when starting a small business. It can also be the most rewarding decisions that you can make for your fina...
|
|
Why it pays to have a network of advisors - part 1
|
| |
Why do you need advisors?
If you’re an entrepreneur, it’s likely that your training is in a specific specialty area. You’re brimming with ideas and very good at what you do. Your major weaknesses are probably i...
|
|
Setting A Budget And Sticking To It Is Imperative
|
| |
You’ve finished the first year of your business and sit down with your accountant to look at your books. The books say you made quite a bit of money this first year, but where did it all go? How in the world did you...
|
|
Panic on the Sales Force and What to Do About It
|
| |
What gets you in a panic? The economy and how it impacts them, either directly or indirectly, is having this effect on about one third of your salespeople right now - today.
|
 |
Related Businesses - Evan Elite Authors |
|
Leanne Hoagland-Smith
Are your sales where you want them to be? Will you be one of the few who achieves sales success or one of the many who have failed to change? So what are you doing to change those results? Let’s be honest, with companies moving globally and at lightening speeds, the traditional business solutions are outdated and dead. My approach moves your business out of its comfort zone and secures your competitive advantage now. If you are seeking to increase sales, build customer loyalty, create a culture of great attitudes or just achieve some sleep filled nights, then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspecialist.com/customer-loyalty.htm Give me a call at 219.759.5601 for a free strategy session. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
Ray Stewart
(Visit Ray's Website)
Ray Stewart is the MD of Coalville
Business Services Limited. He writes
articles and reports about bookkeeping and
business growth strategies, the two areas
of business he is most passionate about.
His bookkeeping business website is at expe
rtbookkeeping.info and is a free
resource for people looking for simple
answers to bookkeeping questions and a
chance to speak to him for free if you
can't find the answer you are looking for.
You can also visit his private blog at raystewart.b
iz and subscribe to the RSS feed there
to keep right up to date.
|
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
