Electronic Company Records - 3 Great Reasons For Doing Them Online!
Why electronic company records are good for your business.
According to the Law as a limited company you must keep:
- records about the company itself
- financial and accounting records
Records about the company include details of:
- directors, shareholders and company secretaries
- the results of any shareholder votes and resolutions
- promises for the company to repay loans at a specific date in the future (‘debentures’) and who they must be paid back to
- promises the company makes for payments if something goes wrong and it’s the company’s fault (‘indemnities’)
- transactions when someone buys shares in the company
- loans or mortgages secured against the company’s assets
Accounting records for a business should include:
- all money received and spent by the company
- details of assets owned by the company
- debts the company owes or is owed
- stock the company owns at the end of the financial year & the stocktakings you used to work out the stock figure
- all goods bought and sold who you bought and sold them to and from (unless you run a retail business)
- You must also keep any other financial records, information and calculations you need to prepare and file your annual accounts and Company Tax Return. This includes records of all money spent by the company, eg receipts, petty cash books, orders and delivery notes received by the company, eg invoices, contracts, sales books and till rolls You must also keep any other relevant documents, eg bank statements and correspondence.
In this blog post we are going to concentrate on company records. We are big believers that your accounting records should be electronic using our preferred system - XERO.
Electronic Company Records - 3 Reasons Why You Should Lose The Paper!
You must send Companies House a company annual return every year. If you miss the deadline, Companies House can close down your company or prosecute you. You could also be disqualified from being a company director. It must include details of:
- the company’s registered office address
- what type of business the company runs (eg retail, accountancy, catering)
- the address where the company’s list of shareholders is kept
- the type of limited company (eg limited by shares, limited by guarantee)
- the name and address of all company directors (and company secretary if you have one)
- the number and value of shares issued by the company and who owns them
- where details of ‘debentures’ (a type of loan the company has taken out with a promise to repay at a specific time in the future) are kept
Electronic Company Records Reason No1 - Saves You Money
You must send Companies House a company annual return every year, within 28 days of the anniversary of the company’s incorporation or risk a £5,000 fine!
- You can send the company annual return online. It costs just £13 via paypal or credit cards to send your return online.
- You can still fill in and send the company annual return on paper using form AR01. It costs over £40 + postage if you want to send paper forms.
Electronic Company Records Reason No2 - Saves You Time
- Clever computer automation makes it easy to manage your company details and any reporting through electronic systems.
- The unique time-saving features of these systems and electronic shortcuts help you increase your productivity and avoids you making mistakes.
- We highly recommend Inform Direct as our online system of choice for managing all your company secretarial activities. It is the XERO for your company records!
Electronic Company Records Reason No3 - Saves You Making Mistakes
- Tailored help in all these electronic processes from these systems makes it clear what’s being asked with lots of online help to guide you through the process of sending your Annual Return.
- Checks of the information you enter and helps you get it right first time.
- Remember Companies House is as unforgiving as the Taxman with mistakes, which can lead to big fines for getting things wrong.
Our Electronic Company Records Special Offer
We are really big fans of Inform Direct.
This system is based in the cloud and constantly being updated with new functionality or to keep abreast of new changes such as the Persons of Significant Control register which has just become a requirement for all companies from April 2016.
If you are one of our clients, then you are covered already by our use of Inform Direct.
New requirements for all businesses such as having to keep a Persons of Significant Control register from April 2016 has already being incorporated within their systems, saving you time, money and the possibility of being fined!
This normally costs £72 per annum for an annual subscription to Inform Direct including VAT.
If you talk to us, we can offer all this great online functionality to you for a great price of just £50 per annum plus VAT.
Our Electronic Company Records Call To Action
Don't ignore your obligations as a director or officer to keep proper company records.
Using electronic systems based in the cloud such as Inform Direct save you time, money and making mistakes which can cost you big fines.
Better still buy this fantastic system from us to save you even more money and be more safe from the Companies House bureaucracy..
If you know of any other great reasons why doing only company records electronically can be good for your business or other tips for making this really work that can be shared with our readers then let us know via the comments or through LinkedIn.
The PJW Call To Action
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Remember - Don’t Leave a TIP with the Taxman!