If you do not keep adequate accounting records HMRC have the power to impose large fines of up to £3k per year for each year that inadequate records have been kept. Please see below a list of some documents that need to be kept by most businesses
- Bank statements. It would be best practice to open a separate bank account for your business
- Cheque stubs and paying in books
- Sales invoices with a unique sequential number. You will never reset your invoice numbers
- Purchase invoices to show details of all expenses,
- Loan agreements, Hire purchase and leasing documentation.
- Workings for Vat returns
- Delivery notes and order forms
- Diary showing appointment for the year.
HMRC are happy for you to keep electronic versions of the above and our partnered Xero cloud based bookkeeping software will store this for you.