Small businesses are being urged to keep on top of their accounts as it can actually enhance a firm's performance.
According to the National Federation of Enterprise Agencies (NFEA), small companies should put taxes and good book-keeping on their list of priorities or risk being penalised.
George Derbyshire, NFEA chief executive, said: "Tax is an increasingly complex issue. Is it the biggest accountancy issue for entrepreneurs? I'd say it was important, but the priority is to keep accurate records, to review them regularly to understand the health of the business, and to take appropriate action."
"And then turn your attention to tax."
He added that businesses are "obliged" to ensure that an accountant gives them a formal audit if their turn-over is more than £5.6 million or their assets £2.8 million.
"We all know that people don't start businesses because they want to learn book-keeping or filling in tax returns. It's generally regarded as a bit of a bind," Mr Derbyshire concluded.
Good book-keeping 'can improve business performance'
