What Records Should You Keep for Year End Accounts?
When year end rolls around, a lot of business owners suddenly find themselves hunting through inboxes, bank apps, paper files, and half-forgotten folders trying to piece everything together. It happens more often than people like to admit. One missing invoice becomes three. A few receipts have vanished into thin air. Then the whole thing starts to feel like hard work.
At Brickbooks & Payroll, we help sole traders and limited companies stay on top of their year end accounts throughout the year, not only when deadlines start breathing down their neck. We work proactively, keep records organised and reconciled as we go, and aim to make year end feel far less stressful than it otherwise would. We also provide bookkeeping, payroll, CIS, tax advice, and year end accounts support nationally.
Why Good Record-Keeping Matters More Than People Think
Good records do more than help us prepare accounts neatly. They help make sure your figures are accurate, your filings are compliant, and your business decisions are based on something solid rather than guesswork. GOV.UK says HMRC can charge a penalty if records are not accurate, complete, and readable. It also says there are no rules saying records must be kept in one particular format, so you can keep them on paper, digitally, or in bookkeeping software, as long as they are usable.
That flexibility is helpful, but it can also be where things go off track. Just because you can keep records in different places does not mean it is a good idea to scatter them everywhere. In our experience, the smoother year end accounts usually come from consistent record-keeping throughout the year, not a mad dash at the finish line.
Expense Records You Should Keep
Plenty of businesses are good at tracking what they earn and a bit less tidy when it comes to what they spend. That is where year end can start getting messy.
Purchase Invoices and Supplier Bills
Keep the paperwork for goods, materials, software, subscriptions, utilities, professional fees, and anything else the business has paid for.
Receipts
Yes, the boring little paper ones too. They matter more than people think, especially for small but frequent purchases that add up over the year.
Mileage and Travel Records
If you claim for business mileage or travel costs, keep a proper log. A vague memory that you “went there a few times” will not help much when year end arrives.
Use of Home and Mixed-use Costs
If you work from home or use things partly for business and partly personally, keep clear records showing what has been claimed and how you worked it out.
HMRC says self-employed businesses should keep records of all business expenses, which is exactly why tidy expense tracking matters so much.
Bank, Card, and Finance Records You Should Keep
These are often the records that tie everything else together.
Business Bank Statements
Your bank statements help us check that the money in your bookkeeping matches what actually moved through the account.
Credit Card Statements
If the business uses a company card or even a personal card for business purchases, the statements should be kept alongside the supporting receipts.
Loan and Finance Agreements
If you have borrowed money, bought equipment on finance, or use asset finance, keep the agreements and repayment schedules. These affect how figures are treated in the accounts.
Merchant and Payment Processor Statements
If you use Stripe, PayPal, SumUp, or similar systems, keep those records too. Fees, timing differences, and payout reports all matter.
Payroll, PAYE, and Subcontractor Records
If you employ people, run payroll, or work in sectors like construction where CIS applies, these records are important at year end.
Payroll Reports
Keep your payroll summaries, payslips, employer payment records, and year-end payroll submissions.
PAYE Records
HMRC says you must keep pay and tax records, and it also explains that records can be kept on paper, digitally, or in software.
CIS Records Where Relevant
For construction businesses especially, payment and deduction records for subcontractors need to be retained and organised properly. This is one of the reasons construction accounting can get untidy so quickly when records are not maintained as you go.
VAT Records You Should Keep
If you are VAT registered, there is another layer to keep on top of.
VAT Return Workings
Do not just keep the final filed return. Keep the reports and calculations behind it too.
VAT Invoices Issued and Received
These back up the VAT you charged and the VAT you reclaimed.
Import, Export, and Adjustment Records
If these apply to your business, they should be kept with the same care as everything else.
VAT records are among the business records self-employed people need to keep if they are registered, and the same principle applies more broadly to any VAT-registered business preparing proper year end accounts.
Asset Records You Should Keep
If your business owns things that last beyond day-to-day trading, keep those records properly. This often includes equipment, machinery, vehicles, laptops, office furniture, and tools.
Purchase Paperwork
Keep invoices and agreements showing when the asset was bought and what it cost.
Disposal Records
If you sold, scrapped, or replaced an asset, keep that paperwork too.
Asset Finance Details
Where the item is financed rather than bought outright, keep the supporting documents with it.
This matters because long-life purchases can affect your accounts for more than one year, and limited companies must keep records longer where they show something bought that is expected to last more than six years, such as equipment or machinery.
If you are in need of record-keeping services, you can consult with professionals that have multiple years of experience in handling records and business paperwork.
How Long Should You Keep Records?
This depends on the business type and the records involved.
For limited companies, you must keep records for 6 years from the end of the last company financial year they relate to, or longer in certain situations.
For self-employed people filing tax returns on time, records should be kept for at least 22 months after the end of the tax year the return relates to. If the tax return is late, the guidance says to keep them for at least 15 months after the date you sent the return.
This is one of those areas where people can come unstuck if they bin things too early. When in doubt, it is better to keep a clear digital copy than wish you had one later.
Our Advice at Brickbooks & Payroll
At Brickbooks & Payroll, we think the best answer to “what records should you keep for year end accounts?” is this: keep anything that clearly supports the financial story of the business. Income, costs, payroll, VAT, bank activity, assets, and anything else that affects the figures should be recorded and organised as you go.
We work on accounts throughout the year rather than waiting for the eleventh hour, which means we can help keep everything properly recorded and reconciled well before year end. That makes the final process quicker, less stressful, and far more useful for the business owner too. We support both sole traders and companies, and we aim to deliver year end accounts promptly, accurately, and in full compliance.
FAQs About Year End Accounts
What records should I keep for year end accounts?
You should keep records of sales and income, business expenses, bank statements, VAT records if registered, payroll records if you employ people, and records of assets, loans, and other business transactions.
Do I need to keep paper copies of my records?
No. GOV.UK says there are no rules on how you must keep records, so they can be stored on paper, digitally, or within bookkeeping software, as long as they are accurate, complete, and readable.
How long do I need to keep business records?
For limited companies, records generally need to be kept for 6 years from the end of the financial year they relate to. For self-employed people filing on time, records should be kept for at least 22 months after the end of the tax year.
Do year end accounts only matter for limited companies?
No. Limited companies have formal statutory accounts obligations, but sole traders also need proper records to support their tax returns and year-end figures.
What happens if my records are incomplete?
Incomplete records can make year end accounts slower, more stressful, and less accurate. HMRC can charge penalties if records are not accurate, complete, and readable.
Contact Us Today About Your Year End Accounts
If your records are scattered all over the place, or you are not completely sure whether you have kept everything needed for year end accounts, we can help. We work with businesses throughout the year to keep records tidy, reconciled, and ready for year end, so the process feels far less like a scramble.
Call us on 01234413751, send us an email at info@brickbooksandpayroll.com or book your free consultation to get in touch. We are happy to help with year end accounts, bookkeeping, payroll, CIS, and tax support.