| If you are setting up in business then you should make | | | | 1. Petty cash book |
| sure you get organised from day one as far as | | | | 2. Till rolls |
| bookkeeping goes so as to avoid any future issues | | | | 3. Electronic or internet sales records |
| with HM Revenue and Customs (HMRC). | | | | 4. Stock take report |
| Good bookkeeping will also allow you to plan ahead | | | | 5. Cheque stubs |
| financially by showing you where the majority of your | | | | 6. Paying in slips |
| income and expenditure lies so that you can capitalise | | | | 7. Records of interest earned on savings accounts |
| on profitable sales and work on minimising your | | | | 8. Details of any income in addition to your main |
| outgoings. And of course, an accurate set of books | | | | business income |
| will ensure you do not pay more tax than is necessary. | | | | If you hire the services of an accountant to prepare |
| There are a number of records that you must keep, | | | | your accounts they will charge you based on the |
| whether you are a sole trader or an employer of | | | | amount of work they need to do. If you simply hand |
| many. Firstly you need to keep a record of all your | | | | them a carrier bag filled with crumpled receipts then as |
| income and copies of all invoices you have issued. You | | | | you can imagine, they will have a lengthy job on their |
| also need to maintain records of your outgoings and | | | | hands and your resulting bill will reflect this. The more |
| copies of invoices you have paid for goods or | | | | you are able to prepare in advance, the less your |
| services needed for your business. | | | | accountants' fees will be. |
| Your tax liability is based on your profit and loss which | | | | Smaller businesses generally find that hiring the |
| is calculated from your income and expenditure. For | | | | services of a bookkeeping company is money well |
| this reason, keeping track of this information as you go | | | | spent because it can ease the burden of taking care |
| along is crucial because if you leave it, everything will | | | | of day to day accounts paperwork so that time is |
| mount up and before you know it, it will be time to file | | | | freed up to concentrate on running the business. |
| your tax return and you will have a major task on your | | | | Bookkeeping firms will make sure your books are kept |
| hands. | | | | up to date and will get them 'accountant ready' for |
| You will also need to keep copies of or have online | | | | you. They will also make sure that you are maximising |
| access to your business bank accounts and | | | | your taxable expenditure and that you don't miss |
| statements together with details of any amounts you | | | | crucial filing and payment deadlines. So by hiring a |
| personally take out of or pay into the business. | | | | professional bookkeeper, there is money to be saved |
| Other things that you should keep on file are: | | | | all round! |
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