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Financial records - Coggle Diagram
Financial records
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Inspection
The directors have a general right to access all the records of the company, have the right to inspect the accounting records at any time and also have an obligation to prepare accounts based upon those records
Auditors have a general rights of access to all the companys books and records and to make enquiries for the purposes of their audit
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Retention periods
A companys accounting records must be kept for a minimum period of 3 years in the case of a private company and 6 years in the case of a public compnay
Many private companies also keep their records for a minimum of 6 years as this is the period during which HMRC is able to investigate the company's tax affairs after the submission of the relevant tax return
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Either at the RO or at such other place as the directors think appropriate and must be available for inspection by any officer of the company at any time
At its simplest form a company's accounting records will comprise bank statements, accounts ledgers, details of suppliers showing who the supplier is, invoices received and paid, details of customers also showing invoices issued and paid and a schedule of assets showing amounts paid and details of any depreciation
Financial records must be kept in order to prepare annual accounts and company tax returns including bank statements, receipts, petty cash books, orders and delivery notes. Invoice, contracts, sales books and till rolls should also be kept
Companies registered as employers must also keep PAYE records to complete annual PAYE returns, calculate PAYE and NICs and show employees are receiving all statutory pay to which they are entitled