What Accounting Records Do I Need To Keep?

How many years of business records should I keep?

six yearsGenerally, you must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to.

The tax year: is the fiscal period for corporations..

Why is it important to keep accounting records?

Keeping track of your invoices, product and service tax returns and other documents that include expenses is important. Record keeping will allow you to keep track of your production costs and will protect you from unnecessary expenses or any discrepancies that could affect your business profitability.

What papers to save and what to throw away?

When to Keep and When to Throw Away Financial DocumentsReceipts. Receipts for anything you might itemize on your tax return should be kept for three years with your tax records.Home Improvement Records. … Medical Bills. … Paycheck Stubs. … Utility Bills. … Credit Card Statements. … Investment and Real Estate Records. … Bank Statements.More items…•

How long do we need to keep accounting records?

6 yearsHow long to keep records. You must keep records for 6 years from the end of the last company financial year they relate to, or longer if: they show a transaction that covers more than one of the company’s accounting periods.

What records do you need to keep and for how long?

How long should you keep documents?Store permanently: tax returns, major financial records. … Store 3–7 years: supporting tax documentation. … Store 1 year: regular statements, pay stubs. … Keep for 1 month: utility bills, deposits and withdrawal records. … Safeguard your information. … Guard your financial accounts.More items…

Should you keep old p60s?

Keep for two years *Tax records, including your P60, coding notices from HMRC and proof of interest paid on bank accounts.

Do bank statements count as receipts?

Acceptable receipts for the IRS include – but are not limited to – cash receipts, bank statements, cancelled checks and pay stubs. When you incur the qualified expense by credit card, the IRS requires a statement that shows the transaction date, the payee’s name and the amount you paid.

What records do companies need to keep?

Assets, liabilities, income and expenditure – If your business is a limited company, you need to keep all of your accounting and business records, including bank statements, paying-in slips, account books, purchases and sales information, to prove the financial position of your business and comply with the Companies …

What books and records should a company keep?

Examples of records your company should keepFinancial statements. … General ledgers and journals.Electronic copies of critical documents. … Cash records. … Bank statements and loan documents.Sales and debtor records.Invoices and statements received and paid. … Any unpaid invoices.More items…

How far back can HMRC investigate?

HMRC will investigate further back the more serious they think a case could be. If they suspect deliberate tax evasion, they can investigate as far back as 20 years. More commonly, investigations into careless tax returns can go back 6 years and investigations into innocent errors can go back up to 4 years.

Should I keep old medical records?

If that’s the case, keep these records for three years. Medical bills: You’ll likely receive physical copies of these bills in the mail. … Keep the physical copies, and make duplicates if you need them. File these away for one year.

How long should you keep bills before shredding?

One yearBills: One year for anything tax or warranty related; all other bills should be shred as soon as they have been paid. Credit card bills: Shred immediately when paid. Home improvement receipts: Keep until the home is sold. Investment records: Seven years after you’ve closed the account or sold the security.

Do I need to keep paper records for HMRC?

You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. HM Revenue and Customs ( HMRC ) may check your records to make sure you’re paying the right amount of tax.

How do you maintain accounting records?

Make sure to file all your invoices in a safe place, preferably in alphabetical and date order so they are easy to find at a later date.Use a separate business banking account for all of your business transactions. … Keep and file all of your cash, credit card and bank transactions.More items…

What are the types of accounting records?

Accounting recordsLedgers.Journals.Bank statements.Contracts and agreements.Verification statements.Transportation receipts.Invoices.Vouchers.

Who is primarily responsible for the maintenance of accounting records?

Accordingly, your management and board of directors remain primarily responsible for the data and information contained in the financial statements, as well as for the evaluation of the capability and integrity of personnel and the maintenance of adequate accounting records and internal controls for safeguarding assets …