12/06/2025
You’re not an accountant. And you don’t need to be.
But if your accountant isn’t asking questions, you’re the one paying for it.
In the first half of 2025, 19 different business owners approached us to review their accounting.
The common thread was a complete lack of communication between the accountant and the business owner.
One new client received a Corporation Tax bill of £16,521 for the previous year from their former accountant.
We reviewed the accounts in detail and reduced the total to £4,319, all within legal frameworks.
Where did the difference come from?
The accountant only looked at the bank account.
The business owner made assumptions.
The result was inaccurate accounting, missed expenses and unnecessary tax payments.
Real examples from real businesses:
Personal payment for rent:
With startups, it’s common that the business account doesn’t yet have sufficient funds.
One client paid £7,200 upfront for six months of retail space from their personal account.
That’s a legitimate business expense, but because the accountant never asked, it was left out.
Apple Pay linked to the wrong card:
Another client bought supplies in-store and paid quickly using Apple Pay.
Their personal card was set as default.
The transaction never appeared in the business account, so it was never included in the accounts.
Electricity top-up paid personally:
The office used a prepaid electricity card.
While shopping, the client added credit to the electricity card but paid for the entire receipt, including snacks, from a personal account.
Only part of that purchase was a business expense, but it was never separated or recorded.
Missing fixed assets:
One company had only three assets on record when in fact they used 26.
No review meant thousands of pounds in depreciation and asset value were left out.
Several clients had VAT claimed on non-VAT items, for example TFL tickets in London.
The entire VAT return had to be redone because this is simply not allowed.
Payroll was not included in financial planning:
Yes, salaries were paid, but nothing was mapped into the annual budget.
You need to know
– who is on payroll
– who is employed
– what each employee earns
– what the director earns
– how much dividend is taken and how often
If these are not planned in advance, the owner believes the business is profitable while in fact it may be operating at a loss.
VAT return without full documentation:
The client received only the first page. They signed it, and later found out they owed £6,000.
The remaining documentation was never attached. This is not how professional service should work.
Here is how we operate differently:
We ask, not just record
We include expenses paid from personal funds
We use Xero so our clients can view their numbers in real time
We meet monthly if needed
From the very beginning, we study how the business operates and continue working proactively
Accounting is not administration. Accounting is strategy.
We are currently offering a full accounting review at no charge for three businesses.
This will help you see if your accountant is doing the job properly or simply entering numbers.
If this sounds like something you need, send us a message.
No1 Accountants
