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: