Keeping the books in check is good business practice and keeps HMRC penalties at bay
Book keeping: it is neither the most interesting of topics nor activities, but it really is the kingpin of any successful business. Whether an established company or a start-up, keeping adequate records is a habit business owners should establish quickly and keep to rigorously. Here are a few reasons why:
- Penalties from HMRC – we know none of you want to incur these, but the fact of the matter is that you may if your records are deemed inadequate by HMRC. The HMRC Business Record Checks (BRC) programme is in place to enforce this. Further information about the BRC programme can be found here.
- Keeping track of business performance – keeping comprehensive records regularly as part of your business routine will enable you to evaluate your business on an on-going basis, which not only helps with business operations but when it comes to dealing with your accountant, it makes life simpler for both parties. Providing thorough records in a timely manner plenty of time to go through them will aid the filing of accounts within important deadlines to avoid late penalties.
- Business profitability – it’s the main objective of any business to be profitable and good book-keeping within business will help identify areas such as expenditure which, when looked at regularly, can be reviewed if necessary. It will also help in business planning including access to finance – as any funding request would need to be backed up with good books and a good business plan
We understand it can be a chore, but good book keeping habits are a must – and we’re not talking about expensive software or complex processes – it can be done on a paper or electronic log. At Adams Moore, we even offer some free software and guidance if you’re not sure where to start.
Contact Tessa if you’d like to know more about the free book keeping software we offer to clients, or for owner-managed businesses needing that extra level of support, get in touch to find out more about Board Support.