We recently took on a building contractor whose previous bookkeeper left the accounts in disarray, particularly concerning wages, CIS, and VAT. Despite having the right tools in place, the bookkeeper lacked the expertise to manage the accounts properly, leading to nearly four years of incorrect postings and missing wage journals. The client, believing everything was fine because the accountant handled HMRC submissions, had no clear view of his financial position or how to measure his business profit and goals effectively.

Upon reviewing the accounts, we found that the accountant had also neglected to correct these issues, even though they had set up and had access to the accounting software. This left the client with inaccurate financial information, making it impossible to measure goals or make informed decisions as his profit was inaccurate. We stepped in to correct the situation by properly posting all financial data, including wages and tax payments, and reviewing the VAT and CIS positions.

Our intervention not only corrected the errors but also allowed the client to define and measure his business goals and profit accurately with reliable financial information. We managed to recover over £15k in VAT that had been mishandled, and with proper processes now in place, the client can recover VAT more promptly, improving cash flow and profitability. These streamlined accounting practices have provided the client with a clear, accurate understanding of his financial position, enabling him to set and achieve realistic goals.

This experience highlights the importance of not only having the right tools but also having a skilled professional manage your accounts. By addressing these fundamental accounting issues, we saved the client time and money, while positioning his business for sustainable growth and financial stability. Now, the client can confidently manage his finances and measure his profitable progress toward defined goals, knowing that his accounts are accurate and up-to-date.