Limited Company Record Keeping: Everything You Need to Know
You have just started a limited company & are all set to kick-start your business. However, as you might know, it’s necessary for you to keep certain documents so as to satisfy HSE, Companies House, HMRC, etc. The bad news is, in case you fail to keep these records, you might even receive a penalty. To avoid this, the below tips might come in handy.
To make sure you’re on a right track, you must keep details of different aspects of your firm. These may include info relate to:
Directors, company secretary & share holders (whenever applicable).
The outcomes of any resolutions & votes from the shareholders
transactions associated with someone purchasing the company’s shares.
Information associated with any mortgages or loans secured against the assets of the company.
The company promises to repay mortgages at a scheduled date, & who they need to be paid too.
In case you’re worried about losing your records, utilise a secure platform like Google Drive or Dropbox.
As you might already know, HMRC is also interested in the financial records of your company, especially in regards to you paying tax. So, it is important for you to keep the below records:
All the cash money spent & received by the firm
debts owed by the company.
Stock owned by the company during the final half of a financial year.
Information associated with the assets of a firm.
All types of goods that are sold & bought.
Any stocktakings used for working out the stocks.
Who you purchased them from or sold them to – excluding the retail businesses.
Other financial info you require to preparing and filing your Company’s Tax Return & annual accounts, which includes:
Any cash spent by your business.
Any cash received by your business.
Other relevant docs like correspondence & bank statements.
Businesses that are VAT registered must also keep a record of VAT purchase invoices and sales, which includes the VAT spent/received on each. Plus, the business must also keep a track of any import as well as export docs.
If you’re an employer, you might be required to keep track of the below records as well:
Info related to payments made to the staff members
deductions made from their salaries for Income Tax, Student Loan Payment & NICs (National Insurance Contributions).
Record of employee expenses & benefits.
Each of the statutory payment record.
To make things easier:
Appoint an experienced accountant who can assist you with submissions & payroll, thus minimising some of your workloads.
Use a reliable accounting software program which allows you to issue invoices, record your purchases, & maintain precise financial records.
Maintain digital records via cloud storage services like Dropbox, Google Drive, etc. This way, you’ll be able to organise documents much better. Nonetheless, make sure it fulfils the criteria set by the HMRC.
Use a payroll program to keep track of employee details and payslips.
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