Most people don’t start a business or run one because they want to spend all day managing their accounts or bookkeeping. And, not everyone has a head for figures, which is why the prospect of having to crunch even the most basic numbers can fill some with feelings of dread.
However, by law, businesses must maintain accurate financial records, detailing all sums entering and leaving that business. Records must be retained for six years and HMRC can ask to see them, to verify your tax return figures, to ensure that your business pays the right amount of tax. HMRC can visit your business to check your financial records, and if they’re not accurate and complete, it can lead to financial penalties.