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These are fundamental accounting tips that you really should take into account when managing your business:

1. Know your accounting principles
   If you are using a computerized accounting package then it is absolutely essential that you understand the correct use of ‘debits’ and ‘credits’. If you need help then please ask your accountant. Always remember that ‘every debit has a credit’.
2. Recognise the difference between ‘revenue expenditure’ and ‘capital expenditure’
   Understanding these fundamental definitions is absolutely essential to the correct preparation of accounts. Incorrect application will misstate the profit reported in your accounts and this could result in a higher tax bill for your business.
3. Perform accounting reconciliaions on a regular basis
   This will help to ensure that the information contained in the accounts is complete. The reconciliation of a businesses bank account is one of the first steps in preparing a set of accounts and if a client performs there own reconciliations then this will reduce their accountancy costs.
4. Keep useful information
   Bank loan agreements, hire purchase contracts, directors information(P60s, use of motor vehicles/mileage etc) and details of capital expenditure are all useful to your accountant when preparing your accounts. Please ensure that this information(where applicable) is provided together with the rest of your accounting records.
5. Complete information is key
   If you are missing bank statements then please request replacement statements as soon as possible.
6. Prepare the accounts on a timely basis
   Recently prepared accounts will be more relevant to your business.
7. Review your accounts before they are finalised
   Does anything look extraordinary? How do the accounts compare to your expectations? Please feel free to discus your accounts with your accountant. This simple process helps to ensure that the accounts are reliable and give a true reflection of your business.
8. Do the numbers make sense?
   Understand the accounts and assess them against your expectations.