You have to keep score…….

There are 3 things that are common to all businesses

MAKE – produce a product or service

SELL – be able to sell it

KEEP SCORE – get your accounting right

Now no-one goes into business to be an accountant (who would!!) but whatever your business type, by law you must keep accurate records of your income and expenditure. You need to keep self-employment and partnership records for five years after the latest date your tax return is due. Limited company records need to be kept for six years after the end of the corporation tax accounting period.

Accurate record keeping has 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


• will improve your chances of getting a loan or mortgage


• makes filling in your tax return easier and quicker


• 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 payments


• helps reduce fees if you use an accountant - your annual accounts will be far easier to produce

The basic records you will need to keep are:

• a list of all your sales and other income


• a list of all your expenditure, including day-to-day expenses and equipment


• a separate list for petty cash expenditure if relevant


• a record of goods taken for personal use and payments to the business for these


• a record of money taken out for personal use or paid in from personal funds - this applies to limited companies


• back-up documents for all of the above

You will need the information above to create your profit and loss account. I f you are not sure about the records you are keeping or need some advice, or would simply like someone else to take the hassle away from you then please call Richard Dare on 01202 875900.