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GMS Business Accountants

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GMS Business Accountants

Hi, I'm Graham Wesson, the face behind GMS Business Accountants Ltd & I'm not your typical accountant.

Talk to me to discover how my personable approach is helping my clients with their personal and business accounts. Hi, I'm Graham Wesson, the face behind GMS Business Accountants Ltd. Starting my career in my 30s, I quickly found my passion in accounting and became CIMA qualified in just two years. With experience spanning from purchase ledger clerk to Finance Director, I now specialise in helping

small businesses and sole traders. My clients appreciate my ability to simplify complex financial issues and my dedication to making their lives easier. When I'm not crunching numbers for my clients, you'll find me cycling, playing squash, or spending quality time with my two children. Based in Cambridge, I'm here to offer you a friendly, personal, and professional accounting service. Reach out to me to book a meeting to see how we can work together.

27/08/2026

What Should You Do When a Receipt Is Missing?

Before writing off a missing receipt as permanently lost, work through a few simple checks.

Start by searching your email inbox. Many suppliers now issue receipts and invoices by email, particularly for software, subscriptions, travel and online purchases.

Next, log in to the supplier’s website or customer portal. Copies of invoices can often be downloaded from the order history or billing section.

Check the bookkeeping software. The receipt may already have been uploaded but attached to the wrong transaction.

Ask the supplier for a duplicate invoice. Most established suppliers can provide replacement documents, even where the purchase was made several months ago.

Review the bank or credit card statement and add a note explaining:

• what was purchased;
• why it was needed for the business;
• who used it;
• whether there was any personal use.

Where the business purpose is clear, the expense may still be recorded even if the original receipt cannot be found.

However, VAT should normally not be reclaimed without a valid VAT invoice or receipt.

It is also important to look at the wider pattern. One genuinely lost receipt is different from regularly having large numbers of unsupported transactions.

Checking for missing documents each month, or before every VAT return, is much easier than trying to reconstruct the records at the end of the year.

https://gms-accountants.co.uk/blog/missing-receipts/

26/08/2026

Where Should Business Receipts Be Recorded?

Keeping the receipt is only part of good bookkeeping. It also needs to be attached to the correct transaction.

An unpaid supplier invoice should usually be entered in the purchase invoice or bills section of the bookkeeping software.

A receipt paid immediately using the business bank account or card should normally be attached to the corresponding bank transaction.

Where a director pays personally for a company expense, the cost may need to be recorded through the director’s loan account or an expense claim.

Where a sole trader pays a business cost personally, it may be recorded as a business expense funded by capital introduced.

Large equipment purchases may need to be recorded as fixed assets rather than ordinary day-to-day expenses.

The purpose of this is to create a clear audit trail.

Someone reviewing the accounts should be able to see:

• the payment;
• the supplier;
• the receipt or invoice;
• the business reason for the purchase;
• the VAT treatment;
• the accounting category used.

Attaching receipts directly to transactions also makes it easier to answer questions at the VAT return or year-end accounts stage.

The best time to upload a receipt is when the purchase is made. Waiting until several months later increases the chance of the receipt being lost, forgotten or incorrectly recorded.

Small improvements in record keeping can save a significant amount of time later.

https://gms-accountants.co.uk/blog/missing-receipts/

25/08/2026

No VAT Receipt — Should VAT Be Claimed?

A common bookkeeping question is whether VAT can be reclaimed when the receipt or invoice is missing.

The safest answer is usually no.

VAT-registered businesses are normally expected to hold a valid VAT invoice or VAT receipt to support the input VAT included on their VAT return.

For example, a business pays £120 to a supplier but cannot obtain the invoice.

The transaction may still be posted as:

Business expense: £120
VAT reclaimed: £0

The business has still recorded the cost, but it has not reclaimed VAT without suitable evidence.

A bank statement proves that money was paid, but it does not necessarily prove that VAT was charged. Supplier statements, order confirmations, delivery notes and pro-forma invoices may also be useful supporting documents, but they will not normally replace a proper VAT invoice.

HMRC may consider alternative evidence in exceptional circumstances. However, this is not something businesses should rely on as part of their normal bookkeeping process.

The first step should always be to ask the supplier for a replacement or corrected invoice.

A useful rule for routine bookkeeping is:

No valid VAT invoice = no VAT claimed.

This approach reduces the risk of HMRC disallowing the claim, asking for repayment, charging interest or considering penalties.

https://gms-accountants.co.uk/blog/missing-receipts/

24/08/2026

Can You Claim an Expense Without a Receipt?

A missing receipt does not automatically mean that a business expense must be removed from the accounts.

The key question is whether there is enough evidence to show:

• what the payment was for;
• that it related to the business;
• who received the payment;
• when it was paid;
• whether there was any personal use.

A bank statement may show a payment to a recognised supplier, software company, insurer, fuel station or trade provider. This can help support the transaction, particularly where the supplier and business purpose are clear.

However, a bank statement does not always show exactly what was purchased. A payment to a supermarket, online marketplace or general retailer could relate to either business or personal spending.

Where a receipt is missing, businesses should add a clear description or note to the bookkeeping transaction. They should also search emails, supplier accounts and bookkeeping software before assuming the document is permanently lost.

The important distinction is between claiming the expense and reclaiming VAT.

A genuine business expense may sometimes be included without the original receipt. VAT, however, should normally not be reclaimed unless a valid VAT invoice or VAT receipt is available.

In simple terms:

A missing receipt may not prevent the expense being claimed, but it can prevent the VAT being reclaimed.

Good notes and supporting evidence can make a significant difference.

https://gms-accountants.co.uk/blog/missing-receipts/

21/08/2026

Review money in and money out together

Aged receivables show the money customers owe your business.

Aged payables show the money your business owes its suppliers.

Both reports should be reviewed together.

Imagine that your business has:

• £30,000 owed by customers
• £20,000 owed to suppliers

At first glance, this may appear comfortable. However, the timing could tell a different story.

If £20,000 of the customer debt is more than 90 days overdue, it may not arrive soon. If the supplier invoices are due next week, the business could face an immediate cash shortage.

The total balances do not therefore provide the full picture.

You also need to consider:

• When customer invoices are expected to be paid
• Whether any customer balances are disputed
• Which supplier invoices are due first
• Whether sufficient cash is available for payroll
• Upcoming VAT, PAYE and Corporation Tax liabilities
• Loan repayments and other regular commitments
• Whether old balances are genuine and recoverable

Reviewing aged reports regularly can help with decisions about employing staff, purchasing equipment, paying dividends, repaying loans and committing to additional costs.

They can also highlight when business growth is placing pressure on working capital.

A growing business may need to pay staff, suppliers and overheads before it receives payment from customers. More sales can therefore create additional cash flow pressure rather than immediately improving the bank balance.

Understanding who owes you, who you owe and when payments are expected gives you greater control.

Cash flow problems are easier to address when they are identified early.

https://gms-accountants.co.uk/blog/aged-receivables-and-aged-payables-explained/

20/08/2026

Late-paying customers can create a cash flow problem

A customer may have agreed to pay within 30 days, but what happens when the invoice reaches 45, 60 or 90 days?

The longer an invoice remains unpaid, the greater the risk to the business.

Late payments can prevent a business from paying:

• Employees
• Suppliers
• VAT
• PAYE and National Insurance
• Corporation Tax
• Rent and utilities
• Loan repayments
• Other essential overheads

This can happen even when the business is making a healthy profit.

Good credit control should therefore be a regular process, not something that only happens when cash becomes tight.

Practical steps include:

• Agree payment terms before starting work
• Include a clear payment date on every invoice
• Raise invoices promptly
• Confirm that the invoice reached the right person
• Send reminders consistently
• Contact customers as soon as an invoice becomes overdue
• Resolve disputes quickly
• Review customer credit limits
• Avoid continuing to provide credit when old invoices remain unpaid

Some businesses hesitate to chase customers because they are concerned about the relationship.

However, a polite and professional reminder is a normal part of business. Customers cannot reasonably expect an unlimited period to pay.

An aged receivables report allows you to prioritise your collection activity. Larger and older debts will usually require more attention than recent invoices that are not yet due.

The earlier a payment issue is identified, the more options the business normally has.

Do not wait until the bank balance is low before reviewing who owes you money.

https://gms-accountants.co.uk/blog/aged-receivables-and-aged-payables-explained/

19/08/2026

Are your aged reports accurate?

Aged receivables and aged payables reports can provide valuable information—but only when the bookkeeping behind them is accurate.

A report may show that a customer owes money even though they have already paid.

This often happens when the receipt appears in the bank account but has not been matched against the relevant sales invoice.

Similar problems can occur when:

• Supplier payments are not allocated to invoices
• An invoice has been entered twice
• A credit note has not been recorded
• An invoice has been posted to the wrong customer
• A payment has been posted to the wrong supplier
• Personal transactions have entered the business records
• Old balances have not been investigated
• Bank reconciliations are incomplete

The bank balance may look correct while the customer and supplier reports remain inaccurate.

This can result in customers being chased for invoices they have already paid, suppliers being paid twice or management making decisions based on incorrect figures.

Warning signs include:

• Balances that have remained unchanged for months
• Negative customer or supplier balances
• Very old invoices with no explanation
• Customer accounts containing unallocated receipts
• Differences between supplier statements and your records

A regular bookkeeping review should include more than checking whether the bank reconciles. Customer invoices, supplier invoices, credit notes and payments should also be matched correctly.

Accurate aged reports give you a much clearer picture of the money coming into and leaving your business.

When were your aged balances last properly reviewed?

https://gms-accountants.co.uk/blog/aged-receivables-and-aged-payables-explained/

18/08/2026

What are aged payables?

An aged payables report shows the money your business owes to its suppliers.

It may also be called an aged creditors report, trade creditors report, purchase ledger report or supplier balances report.

The report normally separates invoices into categories based on how old they are:

• Current and not yet due
• Up to 30 days overdue
• 31–60 days overdue
• 61–90 days overdue
• More than 90 days overdue

Reviewing this information helps you understand what the business needs to pay and when the cash will be required.

It can help answer practical questions such as:

• Which suppliers need paying first?
• What payments are due this week or month?
• Are any invoices being disputed?
• Have any invoices been entered twice?
• Have supplier credit notes been recorded?
• Are agreed payment terms being followed?
• Will enough cash remain for wages and tax?

Delaying payments may help cash flow temporarily, but continually paying suppliers late can cause wider problems. Suppliers may reduce your credit limit, remove favourable terms, stop providing goods or ask for payment in advance.

A reliable aged payables report allows you to plan rather than react.

However, the report is only useful when invoices, payments and credit notes have been entered correctly and the bank reconciliation is up to date.

Do you know what your business needs to pay over the next 30 days?

https://gms-accountants.co.uk/blog/aged-receivables-and-aged-payables-explained/

17/08/2026

Profit is not the same as cash

Your accounts may show that your business has made a profit, but that does not necessarily mean the money is available in the bank.

When you raise a sales invoice, the income may be included within your accounts immediately. However, until the customer pays, the business does not have the cash available to spend.

This is where an aged receivables report becomes important.

The report shows:

• Which customers owe you money
• How much each customer owes
• Which invoices are not yet due
• Which invoices are overdue
• How long each invoice has been outstanding

Balances are normally divided into categories such as current, 1–30 days overdue, 31–60 days, 61–90 days and more than 90 days.

The older an invoice becomes, the greater the risk of a payment problem, dispute or bad debt.

Regularly reviewing this report allows you to chase unpaid invoices before they become seriously overdue. It can also highlight customers who repeatedly pay late and may need different credit terms.

A business can be busy, growing and profitable while still struggling to pay its own bills because customers have not paid.

Sales are important, but collecting the money is equally important.

Strong credit control provides the cash needed to pay wages, suppliers, VAT, PAYE, Corporation Tax, loans and everyday business costs.

Do you know how much your customers currently owe you—and how much of it is overdue?

https://gms-accountants.co.uk/blog/aged-receivables-and-aged-payables-explained/

14/08/2026

Poor bookkeeping can cost more than expected

Delaying the bookkeeping may appear to save time or money.

However, incomplete records often create additional work later.

When annual accounts or VAT returns are prepared, the accountant may need to:

• investigate unexplained payments
• request missing invoices
• correct duplicated transactions
• reconcile bank differences
• separate personal and business spending
• correct VAT codes
• rebuild payroll figures
• review loan and hire purchase payments
• investigate directors’ withdrawals

This can increase accountancy fees because time is being spent repairing the records rather than reviewing the business and planning ahead.

Poor bookkeeping can also hide important problems.

The business may not know:

✓ how much customers owe
✓ which suppliers need paying
✓ whether the business is profitable
✓ how much VAT or tax is due
✓ whether the bank balance is accurate
✓ whether the company can afford a dividend
✓ whether the director’s loan account is overdrawn

Good bookkeeping creates visibility.

When the figures are current and reliable, the business can identify cash flow pressure, monitor costs, chase unpaid invoices and prepare for tax liabilities before they become urgent.

It also creates the information needed for useful management accounts and forward tax planning.

Compliance is important, but accurate records can provide much more than compliance.

They can help the business owner make better decisions.

https://gms-accountants.co.uk/blog/bookkeeping-explained/

Address

4 Cheere Way, Papworth, Cambridgeshire,23 3NZ
Cambridge
CB

Opening Hours

Monday	8am - 5:30pm
Tuesday	8am - 5:30pm
Wednesday	8am - 5:30pm
Thursday	8am - 5:30pm
Friday	8am - 5:30pm

Telephone

+447739828423

Website

https://www.gms-accountants.co.uk/

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