Books of Account - what do I need to keep?

All companies are required to keep adequate accounting records but, what precisely does “adequate accounting records” mean?

Adequate accounting records are records which:

• correctly record and explain transactions of a company;
• detail assets, liabilities, financial position, profit or loss of a company; and
• enable directors to prepare annual financial statements.

The type of information which must be contained within the accounting records should cover information such as outlined below.

• All monies received and spent
• All assets and debts
• All purchases and sales
• Records of stock held
• Records of services purchased or provided
• Record of all goods bought and sold, including a record of itemised invoices

Time is money so, handling all of the above personally may not be the most cost effective option for a company. 

Consider:

-          having a qualified book-keeper (part-time or full-time)

-          retaining information in a simple format - does not have to be a costly bespoke piece of software.

As always, if you have any questions on this blog please contract myself or one of my colleagues.

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