Complying with the law

There are many different records that have to be kept by a business - VAT, PAYE, accounting records of sales and purchases - to name but a few. If your records are inadequate in any of these areas, you could fall foul of the law.

All businesses have to submit accounts to the tax authorities. All limited companies and limited liability partnerships also have to file annual accounts with the Registrar of Companies which follow specific guidelines.

Companies with a turnover of more than £5.6m (for companies with an accounting date after 30 March 2004) are required by law to undertake an annual audit, carried out by a registered auditor. However, even when it is not a legal requirement, most businesses choose to have this independent review because of the positive benefits it can provide.

A Demacks. Chartered Accountant will know which records you are required to keep, help you to keep them properly and ensure that they are filed with the relevant authorities at the right time.