Set up a basic record-keeping system
Introduction
Whatever kind of business you run, you are required by law to keep financial records relating to it.
From 6 April 2024, cash basis will become the default method of accounting, You must opt out if you want to use traditional accounting or cannot use cash basis accounting. See cash basis changes from the 2024 to 2025 tax year.
There are a number of benefits to be gained from keeping accurate and up-to-date business records. It saves you time, and therefore money, whenever you need to produce financial reports. You can be confident that you're only paying the tax you owe. It also helps you keep up to date with how much you owe to suppliers and how much you are owed by customers.
This guide shows you how to meet your legal obligations and set up a basic record-keeping system that works for you. It outlines record-keeping best practice and provides guidance on important financial records, including: