Recordkeeping for your Limited Company is imperative, not only for organisation and efficiency, but for tax and legal reasons. When running a Limited Company, you must keep records about the company itself as well as financial and accounting records. HMRC may check your records to make sure you are paying the right amount of tax.
You must keep details of:
-Directors, Shareholders and Company Secretaries
-Results of Shareholder votes
-Promises for the company to repay loans at a specific date
-Transactions when someone buys shares
-Loans/mortgages secured against the company’s assets
You must keep accounting records that include:
-All money received and spent
-Details of assets owned
-Debts they owe/are owed
-Goods bought and sold
You must also keep any other financial records you need to file your annual accounts and company tax return.
You must keep records for 6 years from the end of the company’s last financial year they relate to.
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.