Stage 8 – How to keep your records and what do you have to keep?
The most effective way to keep your accounting records would be to use online bookkeeping software such as Quickbooks, Xero or Freeagent. These can link to your bank account and bring in your transactions securely.
We would also recommend supplementing this with software such as Receipt Bank, to record your expenses and to keep digital images of these receipts.
The combination of both types of software will reduce the amount of time you spend keeping your books and will also result in better quality records that you are keeping and giving to your accountant. One of the fundamental ways to keep your tax bill as low as possible is to keep the best quality records that you can and to ensure that all your expenses are accounted for and that you have proof of the expense.
Good quality records will also help you if you are ever subject to an HM Revenue and Customs enquiry, having all the records kept digitally in a reliable structure will help you prove the expenses that have been claimed.
