Keeping accurate financial records

Keep accurate business records so you can correctly calculate your profit and loss and have information ready if HMRC requests it.

Records to keep

• Sales and business income
• Expenses
• VAT records, if you are VAT-registered
• PAYE records, if you employ people
• Personal income
• Any grants or support

Keep all receipts, invoices, bank statements and sales invoices.

Organising your business finances

Using a separate bank account for business transactions can make them easier to identify and help you keep business and personal finances separate.

Simple accounting software may also help you manage your records. FreeAgent is a basic option and is free if you have a NatWest business account.

You can choose between two ways to record your finances:
Cash basis: Record money when it enters or leaves your account.
Traditional Accounting: Record transactions when the sale or purchase is made.

For more information on which method is right for you, visit the HMRC website.

Business records if you’re self-employed: What records to keep

Cash basis: Overview