·   Get a receipt/invoice for every business payment that you make.

 

·        Record all of your business takings – and if you take money out before your count up (e.g. from the till to make a payment) – be sure to include this amount in your takings as well.  If you are not already registered for VAT, be aware that you may need to register if your takings are greater than £67,000 in any consecutive previous 12 months (there are penalties if you fail to register when you should).

 

·         Clearly record any non-sales income – in particular your money that you bring into the business. Note customer names/details on paying-in book stubs/slips.

 

·         Write up your cheque book stubs fully – date, payee, item purchased, supplier invoice number.

 

·        Record all of your vehicle’s business mileage (a good way to do this is to keep a small notebook in your car), as well as your total annual mileage.

 

·         Don’t use your business money to make private payments, instead draw out round lump sums – e.g. a few hundred pounds once per month – your “drawings”, and use your private bank account to make private payments.

 

Keep everything – bank statements, cheque stubs, paying-in book counterfoils, copy sales invoices, purchase invoices/receipts, supplier statements, and notes of cash transactions.