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Preparing for Your Annual Accounts
3. Accounting Records
There is a legal requirement to keep detailed accounting records for the company. The exact requirements will depend on the size and complexity of the business.
3.1 For the very smallest company, the absolute minimum accounting records would be:
- Bank statements, cheque books and paying-in books.
- Original invoices for all purchases and copy invoices for sales.
- PAYE records, even if the only employees are directors.
- VAT records if you are registered, including reconciliations of the amounts paid.
- Stock or uncompleted work at year end.
- A schedule of fixed assets.
- Businesses may wish to consider if they would benefit from using accounting software. The software systems can be used to replace your existing system or to improve the information available to you.
Labels: Accounting
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