New businesses 'must have good bookkeeping skills'

Date: 13th February 2008

Business owners have been urged not to neglect the company accounts when starting up on their own.

Small business advice website Startups.co.uk states that people who are used to working for a large company as part of a payroll system can often find the thought of doing their own bookkeeping "quite frightening" at first.

However, the first stage of dealing with accounts should not be to panic but to recognise that HM Revenue & Customs (HMRC) is not a "bullying, authoritarian organisation", the website claims.

Once small business owners reach this realisation, they can then set about planning their accounting system with the help of HMRC.

"If you start off with all the necessary information it will make the bookkeeping process much easier," Startups.co.uk states.

Alternatively, people with business start-ups or more developed small firms may like to seek professional help for their accounting needs.

HMRC will soon have the power to use intercept evidence to catch tax evaders, Accountancy Age reported last week.