Whether you are a sole-trader or a limited company, every business must keep proper books and records.
This is a legal requirement. It is not a bad thing, as you need to keep track of where your money is coming from and where it is gone to, to be successful anyway.
As an accountant, the way people spend there money can tell you a lot about the type of person they actually are, so always bear this in mind.
Every company that is audited by an accountant needed to get the all clear from the accountant that “proper books and records” have been kept.
What does this mean?
It essentially means that there is evidence of: -
- Where the revenue of the business came from and what it related to
- Where the expenses of the business actually went and the receipts for same
- There is a clear path in identifying what the business owes and owns on an on-going basis
The Revenue have a guide on this matter, but just as a matter of note, it is not a legal requirement to have a cash register, for instance, but if you have one (which most businesses have) then it is a requirement to keep track of individual sales.
Every successful business in the world has this proper books and records culture in place.
Copy them.
