Records & Planning
All businesses need to keep records of their financial affairs. They are essential part of good financial management of the business. Moreover, as they are needed for reporting and taxation, they may be subjected to inspection. They must be complete, accurate and clearly presented.
It is far better to plan your approach to record keeping (or book keeping, for this purpose the terms mean the same) when starting out. Leaving it to the end of the first year just delays the problem. In fact, it is likely to make it worse as you will have to retrieve documents, such as receipts or bank statements, from wherever they have ended up. Inevitably some will have gone missing.
Of course, your accountant will be quiet happy to sort this out for you, for a price.
A little planning and preparation up front will avoid unnecessary accountant’s fees and save time. You will have a far better picture of the financial status of your business; you may be able to detect and resolve problems before they get out of hand.