<p style="text-align: justify;">Significance of record keeping in Business
Salim Ahmed, SA &amp; Co Limited
Chartered Accountants and Business Advisors</p>
<p style="text-align: justify;">In the very competitive world of business, a businessman must have an all-encompassing view on the happenings of his business.Herewe focus on how a systematic record keeping observed by a businessman would serve the purpose of his third eye and a lot more for his business.</p>
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An efficient record keeping is paramount to any business which does not only save time, money, hassles, and stress in its operation but also contribute immensely to its growth and development.It is often presumed that one can send all the receipts and documents to his accountants’ office and his job is done. In order to thrive or to simply survive in the business arena, one simply cannot afford to pass the bucks this way. Here being pro-active is the only way forward.A good record keeping system is one of the most effective ways to be on top of our game andalso a legal requirement for the purpose of tax, VAT returns or for any other claims.By ensuring thiswe cantruly turn our accounting service into an efficient tool in aiding the growth and prosperity of your business. A sloppy record keeping could only produce a sloppy accounts and business suffers at the end,resulting financial penalties and also a horrific disaster.</p>
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For any kind of business: self-employed, partnership or limited company,adequate record keeping helps enormously. It keeps tabs on the business expenses, aids in efficient staff-management,planning, increasing the crucial sales figures and reaching to its utmost potential.It will earn respect and good reputation from relevant authorities such as HMRC and banks. For example Bank and building societies highly appreciate a good record-keeping. As banks are now very discreet more than everbefore infinancing even a thriving business, a messy record keeping is considered highly avoidable.HMRC could not emphasize the topic more;mentions repeatedly in their website with several useful pages explaining it. Ignorance has never been a defence; it is disastrous from business perspective. In the past where ingenuine cases a teeny –tiny mistake or certain naivety in business operation was overlooked andexcused by tax authority.But in recent years they are more and more intolerant and refuse to use any discretion towards any shortcomings despite of how innocent or little it might seem.</p>
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Therefore the importance of an efficient record-keeping iseven more significant now. If we take 15 minutes at the end of business day and keep either written recordor do it in computer it saves the business from any legal failings, strengthens and saves it as well. It is tempting to think that we are only making it easier for our accountants but in reality we are no way getting his job done or helping him. By committing to anadequate record keeping we are only helping ourselves and our business in the best possible way. As it is mentioned earlier, an accountant can produce accounts with whatever documents we provide but the product served would be only as good as the materials we provided him with. It is a fact that nobody loves our business as much as we do and nobody wants it succeed as much as we do, hence the 15 more boring minutes will worth it to us at the end.Moreover from an accountant’s perspective, it is a pleasure to work with a client who has a thorough knowledge about his business, provides well-organised documents and information ontime and maintains a well-kept record. Of course these are the same businessmen who avoid penalties, face any HMRC investigation confidently, enthusiastically take part in tax planning discussions with his accounting professionals and thrive in their business. It gives a businessman an added advantage where he can take the best out of any professional or non-professional services he pays for. It works as a great advantage to the business from all corners. It is no way a fun thing to do at the end of a long and busy day but this extra 10/15 minutes of work can save the business from a potential disaster and make it a success as big as you set it out to be.</p>