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Bookkeeping

Bookkeeping involves the recording of financial transactions of a business.  This is required for a number of reasons;

• bookkeeping allows a business to know whether it is making or losing money, what money there is in the bank and what money is owed by and to the business. If the records are kept up to date then they will give a reasonable picture of the business' financial health;
• bookkeeping will allow a business to inform HM Revenue & Customs, the bank manager and any investors how things stand within the company;
• the law requires a business to keep all the documents - bills and receipts - which form the basis of information on the tax return for six years. This includes petty cash records, bank counterfoils, and goods in and out records; and
• bookkeeping will allow a business to know it's turnover exactly. For instance, if the turnover is more than a certain amount in any twelve-month period, a business is obliged by law to register for VAT purposes within 30 days of crossing this threshold. Failure to comply can result in heavy penalties. After registration, the business will need to keep accurate records for the VAT man.

MSP Secretaries Limited can provide your business with its bookkeeping requirements.