Good records are not just for HMRC. They help you understand profit, cash flow, tax, customer payments and whether the business is moving in the right direction. The exact records depend on your business structure, but the basic principle is the same: keep evidence for every business transaction.
Sales records
Keep clear records of what you sold, who you sold it to, when you invoiced, and when you were paid. For retail or hospitality businesses this may include till reports, card payment summaries and online platform statements.
- Sales invoices
- Till or card reports
- Marketplace and payment processor statements
Purchase and expense records
Every business cost needs evidence. That might be a supplier invoice, receipt, subscription invoice, mileage log or bank payment reference.
- Supplier bills and receipts
- Software and subscription invoices
- Mileage and travel records
Bank and payment records
Bank statements are essential, but they are not enough on their own. They show money moving, not always what the transaction was for.
- Business bank statements
- Credit card statements
- PayPal, Stripe, SumUp or similar reports
Tax and payroll records
VAT registered businesses, employers and limited companies need more detailed records because they have more reporting responsibilities.
- VAT returns and workings
- Payroll reports and pension records
- Corporation Tax and Self Assessment support records
How long to keep records
Most UK businesses should keep tax records for several years. Limited companies usually need to keep accounting records for at least six years. If in doubt, keep the record rather than deleting it.
- Use cloud storage with clear folders
- Keep personal and business documents separate
- Back up important records
Key takeaway
If a transaction affects profit, tax, VAT, payroll or cash flow, keep the evidence.
