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Holisticvet Ltd
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"with the corrections that we have made, over £5,000 has been saved in taxes"
Holisticvet Ltd
Arthur Francis Accountancy was initially contacted by Holisticvet in February 2024 to discuss changing from their current bookkeeper as they were not receiving the level of service they wanted.
Discussions initially took place to run through their business, what issues they experienced with keeping their books in check, and how we could streamline this further. In addition, they had fears that errors were taking place and possibly overpaying taxes.
To address these concerns, we outlined our comprehensive approach. We began by ensuring the accuracy and reconciliation of their current books. We then reviewed transactions where no input VAT was reclaimed, and if necessary, conducted a full cost audit to identify potential tax savings. This detailed process reassured Holisticvet Ltd about the thoroughness of our service.
Due to the nature of their business, there are several bank accounts for various transactions. Our approach was to be methodical and go through each one separately. Upon the initial analysis, many transactions were unreconciled on all of the bank accounts, which gave a warning sign that there would be errors within the books.
Firstly, we looked at their online payment bank accounts and reconciled them, correcting errors and duplicates between them and the current account, and clearing the unreconciled transactions. This attention to detail and correction saved the client over £2,000 in VAT.
Once we presented our findings to the directors, they requested that we do a full cost audit of their expenses. We went through the current expenditure to see where improvements could be made. Our initial review concluded with correctly claiming accurate working-from-home expenses and business mileage claims. These suggestions would save approximately £1,000 in corporation tax. In addition, whilst reviewing their expenses, we looked at transactions where no VAT was claimed. This also highlighted errors and saved an additional £500 in VAT.
Our focus then moved to the main current account. This had two issues that were a cause for concern, both related to unreconciled transactions, one with unreconciled receipts and one with unreconciled purchases. Once the online accounts were reconciled, there should be no unreconciled receipts in the current account. What transpired was that instead of matching these receipts to the correct transfer from the online account, these were processed as additional revenue. In total, this saved the client £1,542 in VAT and £1,448 in additional corporation tax.
Over the short period of our business partnership with Holisticvet, Arthur Francis Accountancy, with the corrections that we have made, has saved the client over £5,000 in taxes but, more importantly, has provided them with the trust that they required to know that their books are now accurate.
Holisticvet is a veterinary practice dedicated to health. They use many ways to nudge, cajole, and nurture our patients (and clients) back to a healthy equilibrium. At Arthur Francis Accountancy, we are delighted to have helped save tax but even more so to be a trusted partner and help ensure their business's continued success.
We look forward to our continued working relationship and assisting in improving, streamlining, growing and cost-saving their business in the years to come.
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How to Reduce Business Expenses Without Compromising Growth
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