Essential Records for Your Business

The Importance of Accurate Bookkeeping

In this article, we’ll delve into the crucial records and bookkeeping practices that every business needs to maintain. Accurate bookkeeping is essential for various reasons, including:

• Tax Compliance: Ensuring correct reporting and payment of taxes like VAT and corporation tax.
• Financial Oversight: Understanding your business’s profitability and performance.
• Funding Applications: Providing necessary documentation for securing loans or investments.

Essential Records for Your Business

Here’s a list of common records that most businesses need to keep:

• Bank Statements: Transactions and balances.
• Invoices: Sales and purchase records.
• Petty Cash Receipts: Small cash transactions.
• Contracts: Agreements with clients, suppliers, and employees.
• Insurance Documents: Coverage details.
• Licenses and Permits: Required for business operations.
• Payroll Records: Employee information, wages, and taxes.
• Financial Statements: Income statement, cash flow statement, balance sheet, forecasts, and budgets.
• Tax Returns: Business tax filings.

Digital Bookkeeping and MTD (Making Tax Digital)

Given HMRC’s Making Tax Digital (MTD) initiative, it’s crucial to maintain digital copies of these records. Using accounting software can streamline bookkeeping and ensure compliance.

Recommended Accounting Software

We highly recommend Xero Accounting software for its ease of use and robust reporting features. It can help you track customer invoices, supplier payments, and calculate taxes like VAT and corporation tax.

Additional Software Options

If Xero doesn’t suit your needs, we also have experience with Sage, QuickBooks, and Kashflow.

Outsourcing Bookkeeping

If you’re overwhelmed or unsure about handling bookkeeping yourself, consider outsourcing to a professional bookkeeper. We can recommend qualified individuals to assist you.

Learn More

To learn more about bookkeeping and how it can benefit your business, contact Russell or schedule a meeting.

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