There are heavy penalties if business fails to adhere to such principle and fails to keep record for business transactions. These penalties are as much as £3,000 for no record keeping and this could get even worse if these bad record keeping leads to a wrong filing of tax return. All this is possible by using reliable bookkeeping services.
Bookkeeping, like all other things in accounting, is an essential component to running a successful business, as it enables business owners to keep track of every financial transaction they make. However, for those who are new to the business world or those who are not so familiar with accounting, they may not understand what is bookkeeping all about.
So, first of all, let’s start with a definition of what exactly bookkeeping is. Bookkeeping is basically the systematic organizing and recording of all financial transactions within a business. Bookkeeping, therefore, is the documentation, on an everyday basis, of all the financial transactions involving a company and its financial records. This includes all purchases, sales, invoices, loans, debt accounts, receipts, expenses, and payments.
All businesses has statuary and legal obligation to keep detailed record of their business transactions. Currently as with changes in VAT record keeping at least there is not a formal method of how to record or store your business transactions. However it is expected that at a very least all sales, purchases and administrative expenses should be recorded and kept safe to present should HMRC wish to see any of these records.
Bookkeeping ensures that all important financial documents, incoming and outgoing revenue is thoroughly recorded in order to pay corporate tax. Without utilizing proper bookkeeping services, it can be incredibly difficult to file an accurate tax return. Incorrect returns could mean the business overpays or underpays, which could result in complications with the concerned departments.
At Total Tax Accountants we cannot just keep you compliant but also keep you in the know of business financial position. With good bookkeeping comes good understanding of the business i.e. profit , cashflow status and expenses information. Adequate bookkeeping can help businesses with policy decisions and bring in control measures on expenses or areas which needs most attention.
We at Total Tax Accountants has invested great deal in our sophisticated accounting software and process all your bookkeeping through authorized and approved HMRC digital accounting software providers. With such sophisticated and advanced accounting systems in place we can confidently tell you that all your bookkeeping is in safe hands with us.