It does not matter whether you are self employed, a partnership or trading through a Limited Company, it is a legal requirement to keep accounting records and store them for a minimum of five years after the end of the accounting period to which they relate. Despite this legal requirement there are no rules about the format you must use to record your figures and the level of record keeping required will vary from business to business. However, as a minimum it should include a record of:

• all receipts and expenditure
• all goods purchased or sold

What's important is that you keep accurate, relevant financial records and update them on a regular basis. You may have to pay a penalty if you're unable to back up the statements made in your income tax or VAT (if it applies to your business) returns.

It is easy to forget to complete accounting tasks whilst you are so concerned about meeting sales targets and delivering goods or services on time, but it is important. Accurate record keeping has a number of important benefits. It:

• gives you the information you need to manage your business and make it grow
• enables you to report on your profit or loss easily and quickly when required
• helps you or your company avoid paying too much tax
• provides back-up for claims for certain allowances
• helps you plan and budget for tax payments
• reduces the risk of interest or penalties for late tax payment

There is no prescribed format to keep this information and we can advise on any method you choose - whether it is a manual cashbook, spreadsheet or computerised accounting system. Alternatively, our All Inclusive Service will take care of all of your book-keeping and accounting requirements leaving you with time to spend running your business. For further information on this please see here.