Information means everything to you. If you want to understand why your business is doing so well or maybe not where you want it to be then the information from our bookkeeping system is the key. There are also some important laws regarding information or data and its protection.
how much your company is spending on each expense and where you can cut costs and make savings,
how much you have invoiced your clients and how much they have actually paid you so you can see how much they still owe you,
how much you need to transfer to your business savings account for paying your Corporation Tax and VAT bills,
how much profit you have in the business so you can make a dividend payment.
Keeping your bookkeeping up-to-date each month with your income and expenses will help you to not make any mistakes and receive fines and penalties from HMRC - it is key to being a successful freelancer or contractor.
If you keep a record of your client’s information on your computer then you probably have to register under the Data Protection Act. If you don’t register then it’s a criminal offence with fines and penalties imposed by the courts. The good thing is it’s cheap around £35.00 per year - for more info take a look at the Data Protection Registrar.