Records and accounting periods
You need to organise your records into what is known as accounting periods. Don’t worry this isn’t as complicated as it seems. An accounting period is the length of time that you will record your business income or turnover and business expenses. It will normally last for twelve months. The last day of an accounting period is known as your accounting date, and is the date you will use for your accounts each year. You can choose any accounting date you like, but it will keep your tax affairs as simple as possible if you use 5 April as this is the last day of the tax year. We know that people find it difficult to work out the amount of money coming into their business, so HMRC have introduced a new simpler way to help you do this, it’s called cash basis. Keeping accurate records helps you
WHAT CLIENTS SAYS what kind of record-keeping system will I put in place. I chose to keep my records on a computer using a spread-sheet and did this as soon as I started my business. By doing this I quickly got into the habit of keeping organised, accurate and up-to-date records. It made things much easier to see how my business was going, and whether I was making a profit. You can decide how to keep your records, you might choose a computer software package or prefer to use a paper record book, please call APAS Business Solutions today for free advice.