Record-keeping best practices (UK)

Good record-keeping isn’t about being “great with numbers”. It’s about building a repeatable routine so you always know where your money went—and you can prove it if needed.

This guide gives you a practical structure you can start this week.

The goal: clear, complete, consistent

Your records should be:

Clear: someone else could follow them (including “future you”).
Complete: income and expenses are captured for the whole period.
Consistent: the same method every month.

Checklist: set up a simple filing system

Choose one place for each type of record:

Sales invoices (sent)
Purchase invoices/receipts (received)
Bank statements
Payroll records (if relevant)
VAT returns / submissions
Contracts and key emails

A tidy digital folder structure by month (for example, 2026-04, 2026-05) makes year-end much faster.

Checklist: separate business and personal spending

If you can:

use a dedicated business bank account
use a dedicated business card

If you can’t fully separate, at least:

label personal items clearly
keep notes on business-use percentages for mixed costs

Mixing spending is one of the biggest causes of messy bookkeeping and missed deductions.

Checklist: capture receipts as you go

Take a photo or scan receipts the same day
Store them in the same place every time
Add a quick note if it needs context (what it was for)

Don’t rely on a “receipt box” alone. Paper fades, and small receipts vanish at impressive speed.

Checklist: reconcile monthly (even if VAT is quarterly)

A monthly rhythm usually includes:

reconcile bank transactions to invoices/receipts
check for missing months, duplicates, or unknown payments
update a simple cashflow view (what’s coming in/out next month)

You don’t need to be perfect—you need to be consistent.

Checklist: keep records for long enough

Record retention rules depend on your circumstances (self-employed vs limited company, VAT-registered, etc.). As a rule of thumb, many businesses keep key records for several years.

Practical approach:

keep digital copies where possible
don’t delete “just because it feels old”
if you are VAT-registered or run payroll, be extra cautious with retention

Checklist: choose tools that match your reality

A simple setup is better than an ambitious one you won’t use.

Options include:

accounting software (helpful for VAT/MTD)
spreadsheets (fine if consistent and well structured)
a hybrid approach (capture receipts digitally, summarise monthly)

Whatever you use, the key is a repeatable workflow.

Checklist: prepare for VAT and self-assessment with less stress

If you’re VAT registered:

keep digital VAT evidence (proper invoices/receipts)
check VAT coding regularly
avoid last-minute quarter-end corrections

For self-assessment:

keep a running income/expense summary by month
track one-off purchases separately (equipment, large tools)
save statements for interest, dividends, and CIS deductions (if relevant)

Common record-keeping mistakes

Only doing bookkeeping “when forced” by a deadline
Losing context for odd transactions
Relying on the bank feed alone (missing evidence)
Not saving invoices and receipts because “it’s all in emails”
Storing everything across multiple apps without a plan

A simple weekly routine (15 minutes)

Capture new receipts (photo/scan)
File invoices you’ve issued
Flag anything you’re unsure about (ask before it becomes a problem)

A simple monthly routine (45–90 minutes)

Reconcile the bank
Review income and expenses categories
Check upcoming deadlines (VAT, payroll, self-assessment planning)

Disclaimer

This guide is general information, not accounting or tax advice. Record-keeping requirements vary by business type and HMRC rules can change. If you need clarity on what to keep and for how long, get tailored advice.

If you’d like a lightweight bookkeeping routine that fits around running your business, Jeremy can help you set it up and keep it running smoothly.