Accounting Records & Record Keeping Requirements
Once your company is formed you are required to keep accounting records showing and explaining all the company’s financial transactions. These records should be complete and organised in such a manner to allow you to produce financial statements; and in such a manner to allow HM Revenue and Customs the ability to review them reasonably.
Failure to keep sufficient accounting records is a criminal offence. The UK tax authorities could also impose separate penalties for failure to keep proper records.
There are only a few statutory prescriptions as to exactly what records are required to be kept. The specifications are that the accounting records must contain day to day entries of the company’s receipts & expenditure and a record of its assets & liabilities. The records must be kept sufficient to disclose the company’s financial position with reasonable accuracy at all times as well as giving a “true and fair view” of the companies financial affairs.
These records must be kept at the company’s registered office (or another location the directors think is suitable) and they must be kept for 3 years from the date on which they are made for inspection reasons and kept for 6 years for tax purposes.
You can appoint Wisteria Ltd as your Chartered Accountants, tax & business advisers whilst incorporating your company through our online registration. You also receive a free one hour accountancy, tax and business advice meeting at our offices in London over the phone to help get you on the right track from the start.
For more information on Wisteria Ltd and our accountancy services please visit: http://www.wisteria.co.uk/
To set up your company now that you understand the company accounting records required please go to:
Wisteria Formations have a simple and fast online company formation registration for £24.99. For more advice or any help please don’t hesitate to contact our company formations support team on 0844 893 0808.