If you’re a business owner or manager, you’ll be aware of the amount of paperwork that builds up over time. Physical business documents take up a great deal of space, and if you allow them to become too numerous, it’s very difficult to find the information you require. Although many offices are now embracing paperless solutions, there are always some documents that need to be kept in hard-copy form. If you’re keen to cut down on the amount of financial information that your business keeps on file, it’s important to know which documents are required by law. Paperwork that are no longer pertinent to your business operations can go through document shredding to save space in your office. The documents passed through the shredding services are sorted and recycled by a trusted local recycling facility.
Limited Companies
The most common type of business is the limited company. Managers and owners of limited companies should retain all accounting records, including details of income, expenditure, assets and liabilities. Business records, like bank statements, purchases and sales information, should also be kept to show the financial position of the company. These financial records will also allow your business to determine the amount of Corporation Tax payable. It’s essential that your company keeps a record of all payments made to employees, all deduction from employee wages (student loan payments, income tax, national insurance contributions etc.) and details of employee benefits and expenses. This will protect your company if accused of financial wrongdoing by an employee. Business documents that don’t pertain to accounting, employee records and VAT can usually be shredding using a secure service like Lombard Recycling.
Self-Employment and Business Partnerships
Those who are self-employed or operate in a partnership should keep a record of all sales and takings, including cash receipts. This means keeping till rolls, sales invoices, bank statements, paying-in slips and accounting records. You should also hold on to a record of all purchases and expenses, for example your invoices, receipts, chequebook stubs, bank and credit card statements, mileage accounts and motoring expenses. This will enable you to quickly see what you’re owed, what you’ve spent, and accurately work out your total income. It is also essential for determining how much you can claim for tax purposes. If your business is VAT registered, keep your VAT sales and purchase invoices and any import and export documents, like delivery notes.
The Construction Industry
If you’re a construction industry contractor, it’s essential that you keep a record of all payments made to subcontractors for work done and the materials that subcontractors have purchased. Subcontractors should retain details of all payment and deduction statements, for example copies of payment statements received and copies of any invoices that have been issued.
