Small Company Bookkepping
Company bookkeeping involves a person maintaining the records of his business and it is essential because it is important to have records of how much we invest every day, how much money we make and how great the losses are that we bear in business. It is essential to be able to produce documents for each year's turnover according to the law and you do not want to not have an answer for your expenses!
There are various companies which come forward for professional help with bookkeeping. They do bookkeeping for a single businessman as well as for companies. These services work on a monthly basis. There are various services available for the job of book keeping and these professionals will maintain all your records regarding finances so that as a businessman you are able to save your time as well as maintain your financial records well.
If you own a business you should have an accountant; he or she should be able to tell you about your legal requirements and also what is useful in terms of company bookkeeping. The records most businesses need are:
- Cashflow book which documents payments into and out of your bank account. This must be kept up-to-date.
- Sales invoices must be kept but often these can be recorded on an accounting software, which makes things a lot easier for you. These invoices should be stored chronologically to make your company bookkeeping easier. Bookkeeping can also help you out - store unpaid invoices at the front of the file and then you will be able to easily see who owes you what.
- Buy yourself a dedicated invoice file and get into the habit of maintaining it regularly. Keeping such good files will also make it easier for an accountant when you bring them in, and that will help you by lowering their bill.
Company Bookkeeping Requirements
Every year all businesses are required to register for income tax and perhaps VAT. There are many people who don't know about this but this is a must for each business. Company book keeping maintains all the accounts and thus saves the company a lot of time. This must be done on a regular basis. If there is no proper management of your company accounts then those income tax and VAT bills will remain pending and you could get in a lot of trouble. Your staff might not even find you have the money to pay them! So to overcome all these hindrances in your business, there are bookkeeping companies.
The statistics for UK show that in the year 2008 there were about 10 percent of the total 4.5 million businesses that did not submit their tax documentation by the last date which is on 31 January. In the absence of timely submission of these tax details, businesses are liable to pay fines and penalties. With proper and timely maintenance of your business records, all these troubles can be easily overcome.
To assist in bookkeeping, businesses need to produce some details like those of contributions to personal pensions, employment records, other records of expenses and income, tax certificate, interest certificate from financial institutions; these guidelines are for the employed people. For those who are self employed, details of business expenditure, records of income and expenses, bank statements, deposit books, check books, details of turnover, dividend tax certificates, interest certificates from financial institutions, contributions to personal pensions need to be produced.
Maintaining the Company Books
If you employ professional bookkeepers, they may also offer you employees' account maintenance. They see that employees are being paid correctly and all their bills are being passed accurately. These are very important aspects for the satisfaction of the employers as well as employees. Thus it helps avert various disputes which could arise between the employees and employers - these could be due to incorrect payments or any other reason. With professional company book keeping, even the employees of any business are ensured of timely and accurate payments and this increases their quality of work. You will fulfill your legal financial obligations and avoid losing any money through penalties incurred from the tax office.
So, with good company bookkeeping, you can maintain a legal and professional business which runs much more smoothly. You can pay your taxes accurately and on time. You can ay your staff and maintain your stock. You can therefore save yourself time and effort by just setting aside a little time each month in order to update your financial records. It will even probably be worth your while to employ at least a part time professional to make sure your company bookkeeping is done as it should be. Stay in charge of your business by keeping up with your company bookkeeping. Therefore computer programs and even professional bookkeepers that are easy to find, so you have no excuse.
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