Administration – what it really costs you.
It never stops surprising me working out what poor record keeping costs my clients when I am first visiting them. It’s an area that is often viewed as a necessary (though some might feel unnecessary) evil and can often be dismissed as “oh it’s only boring paperwork”. Let’s look at some of these costs then of the “boring paperwork”
If you are a private limited company: failure to submit you annual accounts to Companies House on time , a minimum of £150 penalty rising up to £1500 if more than 6 months late!
Failing to register as self employed when starting up within the required time £100
Failure to register for VAT when you should have minimum £50 penalty rising depending on how late and the amount of money involved.
I could list many more.
There are penalties for just about everything that involves a submission to a Govt department so good record keeping not only saves you from fines it can save you paying the wrong taxes. Not only tax affairs but think about issues such as health and safety, employment legislation, local operating licences. Sometimes it’s as simple as just keeping your receipts and invoices for any purchases made so that accurate books can be kept – sounds simple but it’s difficult to keep on top of all this when you are so busy trying to gain more customers, keep the ones you have and try and earn a living at the same time. No wonder running a business can be stressful!
Without proper records, not only will it be very difficult to get your Company/Self assessment Tax Return right but you could be missing out on vital management information on all different aspects of your business to help you make decisions to grow and develop it.
Good administration (and by administration I don’t just mean the traditional clerical aspects of running a business – I mean the governance, management, compliance and direction too) is not everyone’s forte and creating good order in your office really is an art . It’s the stuff that keeps the engine going. A skilled administrator is like a mechanic who looks after your car. They will keep your business engine running smoothly so keeping you on the road helping to avoid the cost of breakdowns- they will have the time and expertise to deal with the issues you keep meaning to sort. Would you do all the servicing and repairs on your own car? We all need our own team of supporters round us if our business is to be successful. Struggling on your own all the time might not be very effective and certainly won’t help the stress levels!
What is your administration REALLY costing you?