How do limited companies manage their bookkeeping?
Bookkeeping is the process of recording your business transactions, including any income, expenses, and loans. If you operate your business as a limited company, having up-to-date bookkeeping records will help you make sure the business stays in great financial shape.
Maintaining accurate bookkeeping records is essential, because this information is used to prepare your Company Tax Return. This is submitted to HMRC so they know how much Corporation Tax your company owes. You’ll also rely on your bookkeeping records to prepare company accounts, which are submitted to Companies House.
Good bookkeeping also helps you keep track of your profit and cash flow, helping you to make better, more informed business decisions.
What bookkeeping records should a limited company keep?
Limited companies are required to keep double entry bookkeeping records. This basically means that all transactions are recorded with their opposite entry, which we explain in the guide!
HMRC are rolling out a new tax system called Making Tax Digital, which requires businesses to keep digital bookkeeping records. The new rules are coming into force in stages, but getting a head start on the keeping your records digitally can’t hurt!
Learn more about our online accounting and bookkeeping services for limited companies.