You have a business, and part of owning a business entails keeping books for the business. If you are keeping them yourself, have an employee doing the job, or you’re outsourcing this work, then it still needs to be kept up to date. You as the business owner are responsible for overseeing that your books are well kept.
You will have tax responsibilities and having your bookkeeping correct and up to date will make all the difference at this time. If your books are not well kept then there is the chance that you may pay more tax than you should, or pay too little and have problems with the tax office.
If you are in business you also need to allocate time to review your books regularly to see how your business is fairing. This can give you the knowledge of your cash flow and how your business is running.
Having a bank account for business use only regardless of what kind, is another good idea. Combining private and business banking can cause all sorts of problems with recording issues. A bank account opened entirely for business use allows for cross checking of sales deposits and expense payments of the business without having extra transactions on the statement.
Most businesses now use accounting software, and there are various types available. If you are unsure how to use this type of software consult someone who can advise you on what would be best for you to use for your business. Your payroll Tunbridge Wells bookkeeper or a business consultant should be able to help.
Always keep copies of your financial data, whether its printouts or some other method, if your computer crashes your bookkeeping record may be lost and this will produce a major problem. Having a good accounting system will help when it comes tax time as automation helps with compliance of tax returns.
Keep all paperwork that backs up the information in your bookkeeping, such as income receipts, tax invoices, employee payments, bank statements etc., this will need to be produced if you are audited.