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Keep Proper Accounting Records

Ignore this one at you peril.

In many cases it is a legal requirement to keep adequate accounting records and you could find yourself on the end of a hefty fine from HMRC if you don’t. The vast majority of businesses that fail didn’t keep proper financial records.

Equally important is a business owners’ ability to understand what is going on in his business.
Every business registered for VAT is required to maintain financial records according to the guidelines given by HMRC. Similarly, it is a requirement of the Companies Act that every company should keep proper accounting records of money received and paid, of all sales and purchases, and of assets and liabilities.

HMRC requires every business which employs staff to keep proper records for Pay As You Earn (PAYE) and for the calculation of tax liabilities. All employers’ payrolls are linked to HMRC using Real Time Information. In some types of business, there are additional records that have to be kept to satisfy government requirements.
If you think this is unimportant then:

 You have no reliable information to assist you with your everyday business decisions;
 You pay unnecessary fees to your accountant;
 You cannot supply information to your bank, mortgage lender etc. and so get financial help when you need it

DON’T RISK YOUR BUSINESS

Don’t think you don’t have time or ignore this point there are many cost effective ways keep your records in order and some start from as little as £10 per month. We offer the licence to use online accounting software free to our clients