Errors that Accountants for Sole Trader Businesses Help to Avert

Sole trading is a risky proposition. Yes, when you trade alone you do not have to share the profit and revenues with your partner. However, it also denotes that you have to bear the brunt for losses alone! So the margin of error has to be nil and more so, when it comes to accounting, it has to be foolproof. That is a tall task. The reason being, you have to deal with every accounting nitty-gritty along with your business activities practically single handedly. That is why, you must hire a seasoned accountant specialised in serving sole traders in Greenbank or wherever you are. The professional  will help you avert the following errors. 

Not Checking the Relevant Numbers to the Bank Statements

You need to perform  a detailed check of each and every head of accounts while going through the bank statement and make the necessary adjustments in case of any discrepancy. In accounting terms, this is called ‘bank reconciliation’. No this is something that you can never ever afford to skip. However, the sole traders have a propensity of skipping it, much due to the associated work pressure, which is needless to say, a huge blunder! This is where these professional accountants serving the sole traders will come into play. They will perform bank reconciliation on behalf of their clients to ensure there is no discrepancy or errors of omission in the statement.

Keeping Preparing the Books of Accounts till the Eleventh Hour

This is another huge mistake that the sole traders generally commit - and they cannot be blamed for that either. The huge load of business compulsions compel them to keep preparation of books of account till the last moment. However, all said and done, this in most of the cases leads to costly accounting mistakes and wrongful preparation of IT files and IT return files for which, the traders have to even face penalties. This again is where the accountants for sole trader businesses in Greenbank will act as a saviour. These professionals, upon being hired, will keep the books of accounts flawlessly prepared and updated at any given point in time. 

Mixing the Personal Expenses with Business Finances

This again, is the achilles heel of the sole traders, more so, the starters. They tend to mix up their personal incomes and expenditure with the same related to business. This mixup of personal and business accounts and finance put them in a real tight spot at the end of the financial year, as they are unable to separate the two heads of accounts and fail to ascertain their profit and loss related to the business. A reputed accountant will keep a track of the business finance all throughout the year, and keep the costs and heads of expenses entirely separate from the personal finances. 

Losing the Track of incomes and expenses

The sole traders in many cases lose track of their incomes and expenditure. The reason being, they do not maintain the vouchers for the expenses and receipts for the credits. Now this will lead to a serious financial  chaos at some point in time or the other. When a Greenbank accountant for sole traders is hired, the professional will keep a picture perfect track of every income and expenditure, by maintaining the vouchers and receipts, thus helping in maintenance of a flawless accounting system. 

Thus, hiring professional accountants for sole trading business is an absolute imperative as these pros will help avert a number of ‘deadly’ blunders.