How Proper Bookkeeping Helped Recover £63,704 in Withheld Funds
When one of our clients struggled with cash flow, they considered taking out a business loan just to pay their corporation tax bill. At first glance, their financials appeared in order. However, our team noticed inconsistencies in the bookkeeping that raised a red flag.
Identifying the Problem
The client wasn’t aware of any specific issue—only that money was tighter than expected. But during our routine bookkeeping review, we found missing transaction data that didn’t align with their reported sales. Clearly, something wasn’t adding up.
Digging Deeper into the Bookkeeping
Through further investigation, we discovered the client had two separate portals for sales: one for telephone transactions and another for internet sales. Surprisingly, only one portal showed funds being deposited into their business bank account.
We advised the client to contact their bank immediately to verify our suspicions.
The Breakthrough
The bank confirmed our findings. Due to a missing signature during the setup process, they had withheld funds from one of the portals. Within 48 hours of resolving the issue, the bank released a staggering £63,704 into the client’s account—money they didn’t even know was missing.
The Takeaway
This case shows just how vital proper bookkeeping is—not just for tax compliance, but also for uncovering hidden financial issues before they escalate. Without this thorough review, the client might have taken on unnecessary debt, all while a significant amount of money sat idle.
Don’t Leave Money on the Table
If you’re unsure whether your bookkeeping is up to date—or if you simply want a second opinion—now is the time to act. Talk to us today or learn more about our bookkeeping services to ensure you’re not missing out on money that’s rightfully yours.