Bookkeeping

Keeping records for business – what you need to know
We all need to keep financial records for various reasons. If you fill in a tax return, VAT return or claim benefits or tax credits, there are some special rules.
Here we tell you:

• Why you need to keep records
• What records you should keep
• How long you should keep them for
• Where to get further advice.

To put your business on a proper footing with HM Revenue & Customs (HMRC) and other authorities, you need to make sure that it has the right legal structure. It’s worth thinking carefully about which structure best suits the way that you do business, as this will affect

Cash is the oxygen that enables a business to survive and prosper and is the primary indicator of business health. While a business can survive for a short time without sales or profits, without cash it will die. For this reason the inflow and outflow of cash need careful monitoring and management.
This guide looks at the key elements of cashflow and at how effective cashflow management will help protect the financial security of your business. It outlines the steps that you can take when dealing with your customers, suppliers and stakeholders to improve cashflow. It also highlights common cashflow problems and how to avoid them.

Bookkeeping is when someone records the transactions of a business for example goods and services which have been purchased and paying expenses. Whereas accounting is when the book-keeping records are being used for some purpose, for example comparing business activity from one period to another. Accounting involves analysing and interpreting data, bookkeeping does not involve this.