As a business owner, it is crucial that your accountant has all the appropriate records, this allows them to efficiently execute their profession and legally minimise your tax bill!
Do you need to know what information your accountant requires to handle your finances? Below is a checklist of documents you should share with your accountant, following this list will significantly help your accountant prepare your accounts and tax returns;
- You will need to send over ALL your bank statements for your business or businesses. This means statements for the whole period! Including statements from all relevant accounts too.
- Loan statements – despite only receiving calendar yearly statements, in order to benefit fully, you should request the closing balance from your year-end date from your bank. Interest built up is a tax-deductible expense!
- Business credit card statements – send these over too! If you occasionally, or regularly use your personal credit card for business expenses, send over these statements with highlighted relevant transactions.
- Finance agreements – if you have taken out any new finance agreements within the year, let your accountant know, again the interest on repayments is a tax-deductible expense. Your accountant will categorise these agreements under your business’s investment allowance. Avoid a BIG tax bill!
- If your accountant does not run your business payroll, they will require you to provide all your payroll records for the year. Specifically, your accountant will need print outs of each month’s pay run displaying your employee’s NI number.
- The year’s sales invoices – this includes unpaid ones too.
- To avoid increasing your tax bill make sure you provide all of your purchase invoices and expenses receipts!
- Petty cash receipts and balance at the year-end.
- An estimated stock value!
Tax return records;
- If you have any employment income, provide your P60, OR if at any point during the business year, that income ceased you will need to provide your accountant with your P45.
- If you received a P11d at any point this needs to be given to your accountant to avoid any misunderstandings with the HMRC!
- Details of any private pension payments made
- ALL bank interest received – send these figures and details over to your accountant, including any from your savings accounts. HMRC will be aware of these details already so don’t miss any out!
- All dividends received during the year – no matter how little or insignificant some may seem; they all need to be included.
- Your rental income – your accountant needs to have your property management expenses. Any rental net via an estate agent or mortgage interest, these details are important.
- ANY other income you may have received during the year. Another self-employment? Have you sold a property? Sold any shares?
If you are ever unsure about what needs to be declared, you can always run it by your accountant first. They’re qualified to know what’s best in this field, you know! As well as caring for all of your paperwork and working to legally minimise your tax bill, accountants are advantageous professionals, through experience they can offer useful business advice and business problem solutions, so use them wisely.