We work with a lot of small business owners that are unsure that they need to record for their accounts. We know that accounts can often feel like a bit of a minefield when you are trying to run your own business. This is why we are here to help you with all your small business accounting needs.
In this blog post we have put together the eight essential small business record keeping rules that you need to follow, at all times!
1. Make sure that you always keep receipts, bank statements, invoices, payroll records, etc. We would also recommend that you keep any other documentary evidence that shows your income, deductions or credit shown on your tax returns.
2. You need to get and keep receipts for any expenses that involve travel, parking, accommodation, meals and similar expenses. Retain receipts where possible, but also keep track of what the expenses were, when they were used, where and for what reason.
3. Remember – supporting documents needs to be kept for at least 3 years. Make sure you keep these supporting documents somewhere safe and to hand so you can collect and view if required.
4. You need to keep any employment tax records for a minimum of 4 years. This does not matter if the employee no longer works for you, or if the employee has been with you for longer than 4 years. You need to keep the evidence of their employment tax.
5. Wherever possible go paperless. We highly recommend that you store everything electronically or digitally and always, always have back-ups. We can recommend some good cloud accounting systems for small businesses that may help you with this.
6. If you have a document or receipt that you’re not sure you need to keep, keep it. You never know when you might need it and you could find that you actually need it for something else in the future.
7. Use Apps. There are some brilliant apps out there that help you keep track of your expenses. These apps can track your mileage and travel and you can even scan in receipts too.
8. Don’t be afraid of your accountant. Choose a small business accountant that you can trust and that you want to talk to. They will be able to share tips and best practices with you that will help you grow and improve your business.
If you need any further help or advice please get in touch at enquiries@cedarhouseaccounting.co.uk
