As a busy business owner, you may realize that you have neglected your bookkeeping and tax compliance for the past few months (or even years!).
This usually happens to businesses experiencing rapid growth, as all of the focus is placed on operations and customer service while accounting and compliance tasks are put off.
Now is the time to address this issue. It's important to ensure the long-term success of your business.
So roll up your sleeves and get to work!
Why do you need Catch Up Accounting ?
Focusing on your operations and neglecting the administrative tasks like accounting or taxes is not sustainable in the long term. Sooner rather than later you have to take the time to do a proper catch up of your bookkeeping and tax requirements and set up proper financial processes moving forward.
If you don’t, you are exposing your company to serious issues:
1.Failure to file tax and/or wrong computation in tax filings: As you can imagine, improper tax filings can bring serious tax liabilities and hefty penalties. Make sure to have this sorted out as soon as possible to ensure you are compliant with all your tax obligations.
What exactly is Catch Up Accounting and How is it performed ?
Catch Up Accounting is a process of updating or adjusting financial records of a company. It involves going back and correcting the errors or omissions in the financial statements, so that they accurately reflect the financial position of the business.
Catch Up accounting is a time consuming and complex process, as it involves reviewing and correcting a large amount of financial data, and is usually done by an experienced outsourced accountant with knowledge of the accounting and tax rules of the country.
The steps will usually include:
1.Gathering receipts and supporting documents: collecting all of the necessary documentation, such as receipts, invoices, tax documents, payroll reports, etc. to accurately record transactions and prepare financial statements.
What to do after Catch Up Accounting is done ?
Proseso Consulting - The Finance expert for growing and international businesses
Proseso Consulting provides business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are here to help you achieve your long-term business goals!
Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.