How do I keep good financial records? — Answers

2 min read

Separate accountsFirst rule

Record promptlyNot year-end

6 yearsHow long to keep

The basics

Run a dedicated business bank account so company and personal money never mix — this alone prevents most bookkeeping headaches and keeps your directors' loan account clean. Record income and expenses as they happen using bookkeeping software, keep receipts and invoices, and reconcile against the bank regularly. HMRC generally expects records kept for at least six years.

Why it pays off

Tidy records make management accounts, tax returns and VAT painless, and they make you loan-ready — a lender assessing you through open banking sees a clean, legible trading history. Use a year-end finance checklist so nothing is missed, and keep the discipline monthly rather than cramming at deadlines.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

How long must I keep business records?

HMRC generally requires company records to be kept for at least six years from the end of the accounting period, and longer in some cases. Keeping them digitally makes storage and retrieval simple.

Do I need accounting software?

It is not compulsory, but software makes record-keeping far easier, supports Making Tax Digital, and produces the reports lenders and your accountant want. For most companies it quickly pays for itself in saved time.