skip to main content

Keeping Your Business Finances Healthy

Whatever size your business and whatever industry keeping a record of every financial movement made is the single most important thing you can do. A healthy financial state and a complete record of all expenses, income and claims are essential and a legal requirement when filing a tax return.

For start up businesses, the most important thing to do when ensuring a smooth tax return process is to maintain an impeccable record of your business finances. Note that there is no must have way of keeping records but as long as they are 100% accurate and provide the full details of income, expenditure and any credit claims then they are classed as legally applicable and suitable for HMRC.

Keeping records is difficult and with everything from the cost of your office space to the cost of your employees considered crucial it can be hard to know where to begin and how to keep track.

Below we have broken down the common financial criteria you will be required to keep a hold of. By breaking your business finances down into these areas you have a better chance of keeping those records in pristine condition. It is vital to ensure that if you are going to attempt to maintain bookkeeping in house than do so, on a daily basis. Receipts, invoices and card charges are far easier to record on the same day then six months down the line!

  • Expenses- For a small business or start up it is surprising how many expenses there can be. From the rental fees on a business property to the cost of amenities, the finances required to help your business function effectively must be recorded efficiently.
  • Travel Expenses- Everything from petrol to train tickets for yourself or your employees can be classified as a business expense on the basis that accurate records are kept
  • Payroll- Another vital expense is of course employee payments. Whether you pay weekly or monthly it is essential all payroll details are efficiently completed. Often an approved system such as SAGE is deemed best however Calculated Accountants can help with this. All payroll details must be recorded.
  • Assets- Everything from stationary to the computers used are deemed company assets so the details of such will be required particularly if HMRC wish to review your company. Keep a track of everything you have purchased for business efficiency, keep a hold of receipts and make note if any replacements etc were required.

Keeping record of your business finances is a lot harder than it looks and can be particularly overwhelming in the stages of business start up. However there is no reason why you cannot keep on top of your bookkeeping.

By holding on to your bills, receipts, travel logs, cheques and so forth and ensuring you are aware of the different areas your business finances are broken down into, there is no reason why you cannot have a pristine record of finances that would seriously make her majesty proud! 

Share this article:

Back to Blog

contact us
fixed fees
Get In Touch