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Why keeping accounting records?

Either if they are individuals, a partnership or a company, every business needs to keep records of their transactions.

There are several reasons why a business should keep accounting records, for example to support income, expenses and credits declared on your tax returns, to prepare financial statements, to truck deductible expenses and so on. Of course, the type of records you need to keep depends on the type of tax needed to be paid and the type of business involved.

It is important to have complete, readable and accurate records, not only to avoid the possibility to incur in penalties but also to help businesses to:

According to HMRC there isn't a specific rule to keep records of documents. In fact, you can keep them “on paper, digitally or as a part of a software program like bookkeeping software.” The important thing to remember is that records must be “accurate, complete and readable”.

If documents goes lost or destroyed you need to use “provisional” or “estimated” figures. The difference between the two is that with provisional, you temporarily estimate the figures but you are able to provide later a document to support the figure. Estimated means that you give a best approximation of the figures but you won’t be able to provide documents to support them. There are different accounting software in the market to deal with the digitalization of accounting documents; like for example RECEIPTS BANK.

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Why keeping accounting records?

Either if they are individuals, a partnership or a company, every business needs to keep records of their transactions.

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