Do you have money down the back of your sofa?
Write Offs ! !….
The bane of any business’s financial year.
Any successful business, large or small has suffered the hardship of having to write off unpaid invoices.
Often, the more successful the business is, the higher chance they’ll be faced with writing off a percentage of cash-flow. Team Corp & Comm advise clients to consider this fact so that they can prepare and plan. The more exposure you experience, the more risk you have to manage.
What do I need to Know?
Now as you all know, Corp & Comm don’t do doom and gloom. We find a positive in everything. If you’ve got a canny Accountant, you too can find a little positive in write offs through tax relief on both VAT and Corporation Tax. So make sure you ask about this.
However let us educate you about another, lesser known positive from write offs.
Just because you’ve written off an amount in your annual figures, does not mean to say that that’s the end of it… far from it.
Did you know you have SIX years to recover an outstanding account, irrespective as to which tax year it falls into.
Obviously when you’re successful in recovering your monies, there may be some tax implications on the monies you’ve recovered back but hey, if you’re paying tax on an amount that you previously written off, well then that’s a good place to be in our book.
So don’t delay, roll up those sleeves and dive down the back of that sofa. You never know what hidden gems are waiting to be found in your older debt ledgers, just waiting for that opportunity to be collected properly and be returned to where they rightfully belong… Your Bank Account !
As always if you would like more information or don’t have the time and need to outsource the task get in touch.
Tel. 01535 654 594