Every business has a legal obligation to keep records of their transactions. There is no set format that must be adhered to but at the very least records of all sales, expenses and purchases should be kept.
Unfortunately if a business fails to keep adequate records then they can be fined up to £3,000 by HMRC along with an additional tax bill if the inadequate records resulted in an incorrect tax return being filed.
Aside from the obligations, keeping good records is an essential part of running a successful business. When good records are kept the business owner knows at any given time, how much is owed from customers, how much is owed to suppliers, how profitable the business is and how much cash is available. This means better decision making can be made and improvements in cash flow and profitability can be made if necessary.
Outsourcing your bookkeeping to professionals such as neal ford not only removes one of the biggest headaches involved with managing a company’s financial affairs, but also offers a multitude of benefits such as:
- The most appropriate bookkeeping system being used. We will review your business type, circumstances and requirements and then select the best bookkeeping software package to suit. For the majority of our clients a cloud based software such as Xero is usually the perfect choice.
- Peace of mind. As a full accountancy practice, we have many years bookkeeping experience to ensure fast and accurate data entry, resulting in a correct and complete set of accounts and tax return at the end of the financial period. This is even more important if HMRC were to select your business for an investigation as there is a much less chance of discrepancies being found provided the records given to us have been accurate.
- Tax savings. As we complete your bookkeeping we will constantly be looking for any potential efficiencies which may result in less tax being owed to HMRC. Spotting these inefficiencies and making changes early on can result in significant savings for you.