Avoid year end panic with these tips
Often an overwhelming event, the financial year end brings on feelings of dread for many people. Working to strict deadlines to avoid financial penalties and negotiating what can seem like endless amounts of paperwork is enough to make anyone feel anxious. But there are steps you can take to make this process easier, whether you’re working with a professional or managing your own paperwork. Here are some of hints and tips we’ve curated from the internet:
- Understand your legal obligations. Year end is a term commonly used to describe the documents a limited company is legally obliged to file with HMRC and Companies House at the end of each financial year. The documents you need to file will vary depending on your company. If you file your documents late you run the risk of incurring substantial financial penalties, so it’s important to do your research and understand exactly what you need to file and when.
- Be paperwork proactive. Put in place a carefully thought through administrative process for managing and storing all your relevant paperwork throughout the year. Documents most limited companies need to submit include accounting and financial records which show: all money received and spent, details of company assets, debts and stocks, goods purchased and sold, invoices, contracts, sales books, receipts and bank statements.* For most companies, this is a phenomenal amount of paperwork, and your year-end will be much more palatable if it is managed systematically throughout the year.
- Invest in archiving and storage solutions. Most companies are required to keep their accounting records – the phenomenal volumes of paperwork mentioned above – for six years from the date they were filed. Breach of this requirement can result in a financial penalty of up to £3,000 by HMRC**. So make space for archives and invest in robust archiving solutions to make sure your company can comply with legislation.
ZenOffice stocks a great range of filing and archiving solutions that can help you get a handle on your accounting and financial paperwork.
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