One of the most challenging parts of handling your own accounts, whether it is for business or your personal finances, is keeping accurate records. Organising all of your receipts and bills and keeping evidence of them can cause numerous problems if you don't keep up to date with it. You'll need to devote enough time to organising everything and keeping a record, otherwise you could fall foul of HMRC.
Business accounts are naturally more comprehensive than personal ones because you need to provide more information. Topics like income from sales, business expenses, VAT, investments, accounts receivable and accounts payable all need to be included.
One of the most challenging aspects of dealing with your own business accounts is keeping records for employees. Businesses are required by law to keep a record of what they pay employees, including notes of deductions for absence, sick pay and holidays. If you are covering expenses you need to make notes of these and keep receipts. Full PAYE records should also be kept to ensure you are paying all necessary taxes. You should have a record for each tax year and keep them for the following three years. Businesses that fail to do so can be fined heavily by HMRC.
Business accounts also need to include profit and loss reports and a balance sheet. The profit and loss statement should contain up to date information about income, costs, expenses and earnings. All of the data should be clear and backed up by evidence. The balance sheet shows assets, liabilities and equity; again they need to be supported by relevant details.
If you don't have the time to spare to do your accounts and get everything in order, we would be happy to do it for you. At Worthing Bookkeeping we provide a full range of accounting services throughout West Sussex. We have a special "drop and run" service where clients can leave us all of their receipts and documents and we will organise and catalogue them before creating the accounts and balancing the books. The service will save you time and ensure your information is organised and laid out to a professional standard.