According to HM Revenue and Customs 40% of SMEs — 2 million businesses — do not keep adequate records, even though they are legally bound to keep them, to make sure they make a correct income tax or corporation tax self assessment return.
This week HMRC has launched free tools to help SMEs get their business records ship shape. There are four new products, suitable for the self employed, sole traders and small businesses.
They have been produced in advance of the launch of HMRC’s new Business Record Checks programme later this year, which will impose penalties for significant record-keeping failures.
They have advised that there is something for everyone — from basic factsheets to online tools:
Keeping records for business — what you need to know: a basic guide with a helpful list of where to get more information.
A general guide to keeping records for your tax return: detailed guidance on record-keeping covering what type of records you may have to keep, common problems and examples for different types of business.
Set up a basic record-keeping system: with examples of spreadsheets and information about setting up a record-keeping system.
Find out what records you should be keeping: looks at the records you need to keep and assesses how well you are keeping them. If you are thinking of starting business the tool provides you with a checklist. If you are established it will give feedback and advice on improvements you may need to make.
If you are struggling to keep on top of your finance administration you might want to think about taking on a regular bookkeeper. Often you save money on Accountants fees as there is less work for them to do.
Contact Business Garage if you would like further information on bookkeeping and record keeping.