Record Keeping and YOUR Business – Part One

I know it is difficult to juggle running your business with all the other demands on you time nowadays but one aspect of business life is so often not given the attention it needs.

There are loads of very good reasons for keeping your ‘books’ up to date and accurate and not just to please the Tax Man and avoid unnecessary penalties and interest!

Up to date records are needed for stuff like Working and Child Tax Credit calculations, Housing and Council Tax benefit and obtaining or reorganising your finances. Not to mention your own peace of mind! In my experience those people who have their facts and figures to hand tend to he happier and have more successful businesses.

Lenders have always wanted accounts and business plans prior to even discussing finance but now they expect your records to be very accurate, not just educated guesses, and right up to date. They expect you to have information at your finger tips – how many deposits you have taken, who you owe money to, who owes you money, how much stock you have…. The list seems endless.

BUT – It is easier than you think and for most small businesses there may be no need go to the expense of employing someone to do it for you.

You should keep invoices and receipts and, if you employ staff, records of wages and tax/national insurance and other deductions deducted. Keep bank statements, loan statements and building society books, so you can show clearly all your business and personal spending.  Ideally weekly summaries of cash income and expenditure should be maintained.

My advice to my clients is to keep “Everything” and let us decide what is relevant.

In April 2009 penalties were introduced for not taking ‘reasonable care’ with records and tax returns.

STOP PRESS
Shortly Yes Hotels will be offering you the opportunity to download for free a very simple paper based book keeping system complete with instructions. It will also be available in pre-printed format for £9.95 per annum.