All businesses benefit from a robust record-keeping procedure. It is important to keep financial and accounting records in order to remain in compliance with relevant legislation and to be able to produce documents when requested by HMRC. But some records need to be kept for longer than others.
Due to this very reason, scanning companies like DocCapture seem to have come to the rescue and are helping businesses to digitize their paper documents and store them more securely. This is especially beneficial for businesses that are required to keep records for a number of years. This can certainly reduce the amount of physical paperwork that needs to be stored.
It is important to remember that every business is different, so there will be differences in which records you need to keep and for how long. If you have concerns or you want to know more, make sure you consult one of the accountants glasgow offers in order to correctly organise your record-keeping. That being said, here are some of the essential types of records you need to file in order to run your business efficiently.
- Tax Records
When it comes to keeping records for tax purposes you need to hold them for at least five years, and in many cases you need to do so for longer. For tax purposes, you need to keep the documents that are relevant to money spent and received in the course of your business dealings. Examples of such documents include invoices, cheques, credit card receipts, documents relating to expenses, and all documents relating to cash and banking matters. Consequently, when working with tax recovery professionals (like the ones available at https://wolfexpensesolutions.com/services/florida-sales-tax-recovery/), this record will help them identify and assess any tax liabilities more quickly and accurately, as well as identify the opportunities to save or recover money on taxes.
- VAT Records
Records for VAT should be retained for six years and these include documents for VAT accounts as well as your annual accounts for business, order notes, delivery notes, account books, purchase invoices and sales copy invoices, bank statements, and import and export notes. Managing these records accurately can be important for financial health. For businesses seeking expert guidance, consider consulting with professionals, such as those at The VAT Consultancy, to find specialized services to ensure that all VAT related documentation is maintained properly and follow the regulations. This can also help reduce the financial burden and help businesses to avoid risks related with non-compliance and potential penalties.
- Accounting Records
You need to keep the records you use for your annual accounts for two to three years. A Specialist Accountancy Firm can play a crucial role here. They can meticulously organize and store financial records used for annual accounts, ensuring easy access and retrieval for the required two to three years. For audited annual accounts, accountancy firms can establish perpetual archiving systems, ensuring indefinite retention of essential documents. They can also implement secure digital storage solutions for efficient data management and use advanced recordkeeping techniques to maintain compliance with regulatory standards.
- Staff and Wages Records
Other types of documents that you need on file relate to your wage bill, including P45s, pay details, payroll, and records of national insurance. Every member of staff should have their own confidential file that will include personal details, their application form, their financial details such as national insurance number, as well as payment details and any information regarding holidays and sickness pay.
It is also a good idea to keep records for your own purposes and not necessarily for the tax authorities, such as enquiries, correspondence with clients, contracts, and old orders. This will help you when you start new business or restart with an old client.
