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It is the responsibility of the business to maintain its financial records in a very proper way to ensure the inflow and outflow of the money in it. Failure to keep records can result in a fine of up to £3000 and disqualification as a Company Director so it is important to understand your obligations. Update all the financial transactions in the businesses properly in the bookkeeping. The companies must do the daily bookkeeping tasks to record all the transaction in the bookkeeping. Bookkeeping helps the management to know the cash inflow and outflow. There are some general tasks in the bookkeeping activity to do regularly.
All businesses try to achieve proper bookkeeping management for their business.
The Companies Act clearly says that all companies must keep “true and fair” financial and accounting records for at least 6 years and in some cases longer such as if a transaction covers more than one year’s accounting period or if you have bought something that is expected to last longer than 6 years like equipment or machinery.
Receipts and invoices detailing all money sent and received by the company must be kept as well as details of all assets owned and any debts the company owes or is owed. Details of stock owned at the end of the financial year and the stocktaking used to work this out must always be available and details of all goods bought and sold throughout the year and, unless you are running a retail business, you will also have to keep a log of who you bought and sold to and from.
