What Books and Records are Adequate?
Posted 17 Sep 15
No matter if your company is active or dormant, as its owner you will need to file a tax return each year and provide HMRC with, what its website calls, ‘adequate business and accounting records’.
However, keeping your books and records organised and up-to-date can be beneficial for the development of your business. It allows you to track the earnings and expenses you’ve made throughout the year and make more reasonable financial plans for the future of your business.
During the self-assessment period, HMRC will require you to provide the evidence for all of your business transactions. Understanding what expenses you can and cannot claim when filing for tax return can save your business a lot of money and allow you to invest more in its development.
If you would like to know what benefits you have as a limited owner, contact our experts at Tawanda Accountants and we will be happy to find the best strategy for your business based on your individual situation.
The documents you will be required to provide during the self-assessment include:
Credit card statements
Online transactions statements (such as PayPal)
Cheque book stubs
Purchase invoices and receipts
Contracts and agreements
Certificates, if any equivalent
Due to the fading of the paper most of your documentation will be printed off, it can be useful to scan them and store them electronically. Some of the documents will be provided to you in a hard copy, such as P60s etc. You will need to keep all your records for at least five years after the 31st January submission deadline of the relevant tax year.
If your company is VAT registered, there are more documents you will need to submit. If you feel unsure about what documents you need to store, contact our expert accountants and we will ensure your company’s accounting records are accurate and ready for investigation.
If you want to make sure the paperwork doesn’t overwhelm you, it’s important that you add bookkeeping to your weekly or monthly schedule. You may also want to consider buying online accounting software, which helps you organise your records in a logical and clear way. The software is usually paid for monthly and which you can access everywhere.
One of the most common mistakes people make is forgetting to store receipts for their business transactions, which results in missing a lot of money when the self-assessment period comes. The simplest and safest way to avoid any confusions and mistakes is hiring a professional accountant who will take care of your company’s books and records.
At Tawanda Accountants, we offer our clients superior accounting and bookkeeping services. If you would like to hear more about how we can make your business management easier, contact us and we will help you pick the best option for you.