What is Forensic Bookkeeping?

By sorting the mess of your invoices, purchase orders, bank accounts and other paperwork into an organised format you have the management information you need to manage your business.

This is Forensic Bookkeeping and is what Anita at Think Cash! does.

She first learnt its importance while selling mugs in a market to fund to her singing career, the Revenue sent her letters demanding she pay her tax, which she threw away! Eventually the Revenue got rather nasty and she had to do something about it. She went to an accountant who showed her that by recording all her invoices and payments she could argue with the Inland Revenue, as she would know exactly how much she was making. He then showed her how to minimise her taxable profit. Something she never forgot, and more importantly, it was something she enjoyed.

Since then she has looked after the books of several companies and charity's, her experience has allowed her to keep their records simple and up to date. Eventually, she found simple bookkeeping boring, however, what she really enjoyed was the jigsaw puzzle of sorting muddled accounts. It was fun. She had a knack for forensically examining chaotic accounting systems and got satisfaction from helping those companies that were in such chaos that their accountants, just to sort them out, were threatening to give them a huge bill.

The result is that accountants now recommend her to their clients, and some small companies have even bought her their accounts in plastic bags!

While doing this she identifies where cash is being wasted, then sets up a system allowing the company to manage its paperwork, allowing her to walk away. Usually she pays for herself by identifying money hidden in the company. Recently on her first visit to one company she found and got returned £4,000 held by a utility company, she more than paid for herself!

On another occasion she helped an hotel that had a fire, she reorganised the accounts to a level that even the inland revenue accepted them! Then there was the company where following her work after one year had £100,000 in the bank!

That's forensic bookkeeping.

Can she help you? That's Think Cash!

Tony Dalton is a well respected business Mentor covering the Midlands and Warwickshire area. Click here for more information on Tony and "Think Cash"

#thinkcash #cashflow #cashmanagement #cashflow #kenilworth

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