Some companies tend to focus just on the revenues, neglecting some of its main disciplines. To run a limited company in the UK, it is important to maintain the registers and records of the company. This helps to improve the efficiency of a company and enhances its growth and development in the future years. There are certain records which every company needs to maintain. The finance department is an important part of the company so all the records associated with accounting needs to be maintained such as the employment records involving incomes. The company registers should have the details of any board meetings announced, as well as the list of directors and shareholders of the company must be kept as well. Other than this, a record of resolutions, debentures, loans that were taken and so on should be included too.
Accounting Records:
Accounting Records are an important part of your limited company registers. There must be a record of the total money which has been collected and consumed by the company, the information regarding the assets of the company, where the goods and services come from, the entire stocks and any liabilities of the company. Other than this, there can be records of sales invoices, cash books, bank statements and so on. These records are supposed to be maintained for six years. Those who fail to keep their records, they are charged with a heavy compensation amount or it can even lead to disqualification as a director. There are certain ways through which limited companies maintain their registers and record their transactions.
Balance Sheets:
A balance sheet provides a collection of assets, debts or liabilities, and the equities of the shareholder as well following the financial year. This guides all the debts which the business owns or is owned, which further helps to indicate the overall financial condition of the limited company. Assets can include any stock, machinery, area, transport and so on.
Profit and Loss Statement:
This Profit and Loss statement comprises of all the transactions which occurred within a particular period indicating if the company was able to get profits or suffered from losses at that time. The total expenditure of the company will be subtracted from the revenue generated by the company. This is a good way of recording transactions of the company for a whole financial year.
Auditor’s Report:
An auditor’s report is an analysis of how fair were the accounts of the company. This report should include the duties of auditors and directors, and if the accounts had been made as per the UK Generally Accepted Accounting Practice. Also, this report should tell if these statements depict the financial condition of the company or not.
Conclusion:
There are multiple options to maintain your limited company register. The records of accounting and transactions can be maintained on a piece of paper, generated digitally or can be kept using a software program too. A balance sheet, a profit and loss statement and an auditor’s report are some of the ways of how companies record their transactions. Seed formations in the UK help you form your own companies and offer you various packages too.