H: i) Bookkeeping and Administration

Good bookkeeping of all your records is essential, and a legal requirement. All your business records must be kept for at least seven years. The VAT, Inland Revenue, Wages Inspectorate organisation and others, have the right to come and inspect your records.  Some have draconian powers of investigation. 

An investigation into the affairs of your business can prove to be very costly, stressful and time consuming. All these can have an adverse affect upon your business.

If you are not good at administration, or if you are busy running other aspects of your business, it is essential you Have a competent person overseeing this area. 

Buying at the wrong or uncompetitive prices, being overcharged, or charged for items and goods not received, does all too frequently occur.  Late payment of invoices can also be a big problem, as it can cause havoc with your cashflow. Difficulty in assessing your VAT, not reclaiming your VAT due to you and failing to pay suppliers on time can also prove problematic.
  
Suppliers, customers and even a business’s own staff and will take advantage of businesses whose administration is poor; therefore you cannot afford complacency in your administration.

Being paid late and not sending your own invoices out on time, can prove to be very costly to a small business. If money doesn't come in on time, how will you be able to pay your suppliers and staff?? Are you losing customers because of it? If you are known to have financial difficulties, you can lose customers and suppliers.

Having inefficient administration and not knowing your profitability and loss is one of the easiest routes to failure!