Whatever your business structure you will need to keep financial records. Not only to keep the friendly folk at HM Revenue &Customs happy, but also to form the basis of your annual accounts. The announcement in January by HMRC that they intended to crack down on poor record keeping by SMEs, with potential fines of £3,000 was a wake up call to all businesses.
Aside from avoiding potentially hefty fines, good financial records will also help you to monitor the performance of your company and make informed business decisions. Good systems, accurate records and timely reports also result in greater business efficiency and provide you with the information you need to manage your cashflow and run your business successfully. An added bonus is that you can stay on top of those customers who seem to be allergic to paying their bills, by acting quickly.