Why UK Businesses should maintain record of all Bills and Invoices

Why UK Businesses should maintain record of all Bills and Invoices

Be it any country, it is very important to keep a record of all the bills and invoices. Similarly, in the UK it is mandatory to maintain the supporting Bill for claiming expenses and VAT.t

Why UK Businesses should maintain a record of all Bills and Invoices : If you are running a company in the UK, then being the head of the company it is very important to keep a record of the below-mentioned things:

• About the shareholders and the directors of the company
• The loans and the mortgages that are in a value of the company
• The transactions when a person buys shares from the company

About the VAT records:
For the company, it becomes highly beneficial when it maintains the VAT records, which involves:

• The copy of all the invoices that the company makes as well as receives.
• If there are any self-billing suppliers then a note of the name, address and VAT number of the same.
• All the debt, credit and well as import-export records of the company.

If the company is making use of the cash accounting system then records of the cash flow, cheque system and rest all payslips should be maintained. Also, the company can make use of all the records to match with the pay slips.
Lastly, the company should also maintain certain accounting records such as,

1. Money that is being received and spent by the company
2. The goods that are bought and sold out
3. The amount of stock that the company owns at the end of the financial year

It is important to maintain records as it will help to clear the records at the end of financial year. Also, the HMRC has also started a compliance check for better maintenance of records.

To know more contact Meru Accounting today!