Probably the main reason many small businesses perform book-keeping tasks regularly is to meet their legal obligations. There is a legal requirement to keep business records and book-keeping is basically the recording of financial transactions.

For individuals carrying on a trade, profession or business alone or in partnership, specific record-keeping requirements are set out in the Taxes Management Act.

For a company, there is broadly a requirement to keep records of receipts and expenses in respect of its activities. In addition, company law has its own record-keeping requirements.

HMRC provide a wealth of guidance on their web pages.

There are many other reasons why someone in business would want to keep records of their business transactions. Other reasons for keeping accurate records include having a reasonable idea of your business’s financial health and having accurate figures available for any interested third parties such as banks and investors.

You will need an accurate record of your turnover if you are approaching the VAT registration threshold. Penalties and interest are charged for late registration and payment of the VAT owing for the period the business should have been registered. These amounts can be substantial if the need for registration is not recognised until annual accounts are prepared up to 23 months later.

Record keeping is one thing, interpreting the figures and preparing accurate accounts is another. However, you can save yourself a considerable amount in accountancy fees by keeping tidy, well laid out records.

If you want someone to take care of your day to day book-keeping requirements we can help.

If you need or want management information or just like to keep an eye on things, we can provide monthly, quarterly or half yearly reports, or any other period that springs to mind. Our Book-keeping service can cover all of the work or as much as you decide.

Contact us for a quotation for the book-keeping service you require.

We can also point you in the right direction to find free book-keeping software and provide you with an excel template for simple book-keeping.

If your records are more involved or complicated we can offer advice on the choice of an accounting system that is right for you.

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