Stonegate Accountancy & Bookkeeping

Keeping your books in order

Keeping your bookkeeping records in good order is one of the most important things you can do when running a business.
Good records help you understand how your business is performing, reduce stress at tax time, and ensure you meet your legal obligations to HM Revenue & Customs.

Whether you’re just starting out or have been trading for some time, setting up a simple and consistent bookkeeping system will save you time, money, and worry in the long run.

Why good bookkeeping matters

Keeping accurate and up-to-date records allows you to:

HMRC requires business records to be complete, accurate, and retained for at least 5 years after the relevant tax year.

We work with Xero Accounting Software which is cloud based and is easy to use for our clients.

What records you should be keeping

At a minimum, most small businesses should keep:

Income records

      • Sales invoices issued

      • Till rolls or sales reports

      • Bank statements showing income received

      • Online platform reports (e.g. Etsy, Stripe, PayPal)

Expense records

      • Purchase invoices and receipts

      • Mileage logs (if using a vehicle for business)

      • Bank and credit card statements

      • Evidence of home-office or utility costs (if claimed)

Other important records

      • VAT records (if VAT registered)

      • Payroll records (if you employ staff)

      • CIS records (if you work in construction)

      • Loan agreements and asset purchases

 

Paper records vs digital records

You can keep records on paper, digitally, or a mixture of both. However:

For most businesses, moving to a simple digital bookkeeping system is the most practical and future-proof option.

Setting up a good bookkeeping system

A good bookkeeping system doesn’t need to be complicated. The key is consistency.

A simple setup usually includes:

  • A dedicated business bank account

  • Cloud bookkeeping software (such as Xero or FreeAgent)

  • A method for capturing receipts (apps, email, or scanning)

  • Regular time set aside each week or month to keep records updated

 

Keeping on top of bookkeeping little and often is far easier than trying to catch up months later.

Preparing for Making Tax Digital (MTD ITSA)

Under MTD ITSA, most self-employed individuals and landlords will need to:

  • Keep digital business records

  • Submit quarterly updates to HMRC

  • Submit a final end-of-year declaration

Even if MTD ITSA does not apply to you yet, setting up good digital bookkeeping now will make the transition much easier.

We strongly recommend that businesses start using compliant software and good record-keeping practices well before they are legally required to do so.

Common bookkeeping mistakes we see

Some of the most common issues we help clients fix include:

  • Mixing personal and business spending

  • Missing receipts or incomplete records

  • Long gaps between bookkeeping updates

  • Relying solely on bank statements

  • Leaving everything until the tax deadline

These issues often lead to higher fees, delays, and unnecessary stress — all of which can usually be avoided with a better system.

How Stonegate can help

At Stonegate Accountancy & Bookkeeping, we help businesses at every stage, including:

  • Setting up a bookkeeping system from scratch

  • Cleaning up disorganised or historic records

  • Ongoing bookkeeping and VAT support

  • MTD ITSA preparation and compliance

  • Training and guidance for clients who want to do some or all of their own bookkeeping

We focus on clear systems, practical advice, and support that fits your business.

Not sure where to start?

If you’re unsure whether your current records are sufficient — or you’re planning to start a business and want to get things right from day one — we’re happy to help.

👉 Get in touch to discuss your bookkeeping setup or to book an initial review.

Telephone us on : 01278 433014     or    fill in our contact form at the bottom of this page.