Do you keep adequate books and records for your business? In April HMRC announced the start of a pilot programme of Business Records Checks (BRCs) to review both the adequacy and accuracy of business records within the SME sector.  It is reported that from letters sent to SMEs from the Liverpool tax office none of the businesses checked were deemed to have adequate records and that these businesses have been advised that Inspectors "may visit you again in the next three months to check whether you have made improvements in the areas mentioned" – and this was just the pilot scheme!

The specific areas indicated for improvement were;

·          that sales invoices should be issued with consecutive numbers and

·         a cash book maintained.

·         a drawings record should always be kept,

·         a mileage log maintained and

·         business records written up at least weekly.

The emphasis of HMRC’s checks are on you maintaining up to date books and records as a basis of your final accounts and tax returns submitted to HMRC.  In the absence of such records, they are looking at the risk of under declared taxes and are concentrating particularly on new start ups.  It is important that your books and records are kept up to date regularly and in a form appropriate for your business affairs.

If you need any help with your record keeping please let us know.  We can help you introduce bookkeeping software that is simple and which will make the maintenance of your books and records relatively straightforward.  Alternatively let us take the strain and we’ll look after it all for you.

The benefits to you of us looking after the books and records, or of you using some simple accounting software are that you will have up to date management information on which you can base your management decisions and you will avoid problems arising from scrutiny by HMRC.

What do you think about this?  Perhaps you already keep up to date records?  Or perhaps you don’t see the point – or you’re simply too busy running your business?