Overview of Limited Company Bookkeeping
Limited companies must keep digital double-entry bookkeeping records. Directors must maintain registers by law at the registered address. Most records can be digital. Supporting documents should be kept for 3 years, accounting records for 6 years, and minutes of meetings for 10 years.
Essential Bookkeeping Tasks
- Record income, expenses, and outgoings
- Take a basic salary and additional amounts as needed
- Declare dividends
- Analyze slow-moving stock items
- Keep asset and liability records
- Limit stock retrieval
- Keep inventory records up to date
- Set alerts for low stock
- Automate repetitive tasks
Financial Management in Limited Companies
- Pay employees accurately
- Accept various payment types
- Categorize transactions
- Choose between cash basis or accrual accounting
- Open a business bank account
- Monitor cash flow
- Generate financial reports