Latest blog from the hansen company

As we round off the year, many of us are thinking about what to leave behind in 2025 and that includes bad habits in our businesses. Just like Santa’s list, your bookkeeping and accounting habits deserve a little “naughty and nice” Christmas audit. So, for this December, let’s unwrap what good accounting habits you should be celebrating … and what bad ones you should definitely leave out in the cold.

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1.      Save Every Receipt Straight Away

• Use a receipt capture app or take quick photos of physical receipts. Keeping digital versions as you go makes it far easier to categorise expenses and prepare for tax or VAT. 
• This habit reduces the risk of losing important documentation and makes reconciliations far smoother. This is something many accountants recommend as a cornerstone of clean bookkeeping. 

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2.       Set Money Aside Regularly for Tax & VAT

• It’s not just about making profits,  it’s about preparing for obligations. A common mistake is underestimating how much will be owed.  
• Create a separate savings pot specifically for tax & VAT. Treat it as a non-negotiable “expense” every month.

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3.       Reconcile Your Bank Regularly

• Monthly bank reconciliations help catch mistakes, duplicates, or missing entries.  It also ensures cashflow visibility, and reduces stress at year-end or filing time.

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4.       Use Cloud Accounting Software

• Use a digital tool (like QuickBooks, Sage, etc.) to automate data entry, invoice tracking, and VAT returns. 
• This also helps with Making Tax Digital (VAT & Income Tax) requirements and makes your financial data accessible anywhere. 
• Bonus! Cloud systems often let you attach receipts or invoices directly, keeping everything in one place.

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5.      Stay On Top of Deadlines

• Use calendars, alerts, or your accounting software to remind you of key dates: VAT returns, tax payments, year-end accounts, etc. By planning ahead, you avoid last-minute scrambles and reduce the risk of fines or late penalties.

6. Get Help When Needed

• If bookkeeping is taking too much time or feels too complex, don’t hesitate to contact us to help. Many small businesses make mistakes because they try to do everything themselves. Let us help take away any heavy burdens. 
• We can also help you structure a tax‑efficient savings plan, advise on VAT, and keep you compliant.  Let us help you succeed!  

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 The Naughty List — Habits to Kick to the Curb in 2026

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Now, let’s be honest: there are some accounting habits that belong on the naughty list. These are the sneaky ones that quietly undermine your business until tax season hits like a snowball to the face.

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1.      Leaving VAT Until the Last Day

• Waiting until the last minute to think about VAT is a risky game. You might not have enough in your account, or you might miscalculate what you owe.

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2.      Putting Off Bookkeeping / Procrastinating

• “I’ll do it next week” is a dangerous mindset. Delays in bookkeeping lead to messy records, missing receipts, and chaotic year-end work. It also obscures your cash flow, making it harder to make good decisions. 

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3.      Mixing Business and Personal Finances

• Using the same bank account for personal spending and business transactions blurs the lines, makes reconciliation hard, and can get messy come tax time. This is such a common mistake that every accountant will warn you about. 

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4.      Not Reconciling Accounts Regularly

• When bank reconciliation is neglected, errors go unnoticed, cash flow becomes unclear, and you may not spot fraudulent or duplicate transactions. 
• That “out of sight, out of mind” approach can, and often does,  come back to bite you.

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5.      Failing to Utilise Your Software Properly

• If you’re using accounting software but just entering data manually, you’re not getting the full benefit. Many bookkeeping software has features for automation, receipt capture, reminders, categorisation and they work well to save you time, even money, if you use them properly. We can help you with this! 

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6.      Ignoring Professional Advice

• Trying to DIY everything can lead to non-optimal tax planning, missed advice on VAT strategies, or even compliance risk. We aren't  just here to keep you compliant, we can help you build smarter business habits and a successful future!

We encourage you to give us a call to catch up and build better habits in 2026!  Please give us a ring on 0141 644 5486. 

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