Record Keeping

ashored
Jun 20
1 min read

All businesses need to keep financial records. The exact nature of these records will depend on the type and size of the business.

Here we look at the financial records that businesses are required to keep by law. We also consider other records that might be useful or good practice to keep that can allow informed decisions to be made.

All businesses need to keep records.
A business will need to keep, as a minimum, basic accounting records. These comprise a cash book, sales ledger, purchase ledger and, where staff are employed, wages records. Bank details such as cheque books, paying-in books, bank receipts and bank statements must also be retained.
Businesses need to ensure they protect data.
Businesses need to keep basic accounting records.
If the business is registered for VAT, certain records must be kept for VAT purposes and to facilitate completion of the VAT return.
A business will need to maintain sufficient records to enable its tax liabilities to be calculated.
HMRC is moving to a new digital interface.
A limited company is required to maintain certain records in order to meet company law requirements.
A business needs reliable information in order to monitor performance and make informed business decisions.
Business and personal records should be kept completely separate.
Business records on computers should be backed up regularly and must be kept safe and secure under the Data Protection Act 1988.