SMALL BUSINESS BOOKKEEPING · UK
Every UK business has to keep records. HMRC sets the rules for tax, and limited companies also answer to Companies House. This page explains what records a small business needs, the three ways to keep them, and the signs it is time to hand the work over.
Book a free call Start with what you need
WHAT THE RULES SAY
Bookkeeping is the day-to-day record of money in and money out. Tax returns and accounts are built from it. The rules depend on how your business is set up and whether you are registered for VAT. The summary below is taken from GOV.UK. The links at the foot of the page go to the original guidance.
SOLE TRADERS AND PARTNERS
If you are self-employed, GOV.UK says you must keep records of your business income and expenses for your Self Assessment tax return. That means all sales and income, all business expenses, VAT records if you are registered for VAT, and PAYE records if you employ people. You also need records of your personal income.
You must keep these records for at least 5 years after the 31 January submission deadline of the relevant tax year. Our guide on how long to keep business records covers the detail. If you are deciding between cash basis and traditional accounting, read cash basis or traditional accounting.
LIMITED COMPANIES
A limited company must keep records of all money received and spent, the assets it owns, debts it owes or is owed, stock at the year end, and the goods it bought and sold and who with (retailers do not need the who). It must also keep the paperwork behind them, such as receipts, invoices and bank statements.
GOV.UK says these records must be kept for 6 years from the end of the last company financial year they relate to. It also says HMRC can fine a company £3,000, or a director can be disqualified, if accounting records are not kept. Each year the company files accounts with Companies House and a Company Tax Return with HMRC, and both rely on these records. See company tax return vs company accounts.
VAT AND MAKING TAX DIGITAL
You must register for VAT if your taxable turnover for the last 12 months goes over £90,000. Once registered, you must keep VAT records for at least 6 years. GOV.UK says all VAT-registered businesses should now be signed up for Making Tax Digital for VAT. That means keeping some VAT records digitally and sending returns from compatible software. If you use more than one program, the records must be digitally linked, not copied and pasted.
Making Tax Digital for Income Tax applies to sole traders and landlords. Those with qualifying income over £50,000 in 2024 to 2025 should have started from 6 April 2026. Over £30,000 in 2025 to 2026 starts from 6 April 2027. Over £20,000 in 2026 to 2027 starts from 6 April 2028. Our Making Tax Digital bookkeeping page explains how daily records fit those rules.
THREE WAYS TO DO IT
There is no single right answer. It comes down to your volume of transactions, your time and how much you need to know your numbers week to week.
OPTION 1: DO IT YOURSELF
Many owners start by keeping their own books in accounting software or a spreadsheet. It works when there are a handful of transactions a week and you enjoy the admin. The cost is your evenings, and the risk is that it slips when the business gets busy.
If you go this way, set up a sensible chart of accounts, learn bank reconciliation and keep to a month-end checklist.
OPTION 2: A BOOKKEEPER, MONTHLY OR QUARTERLY
A traditional bookkeeper usually works through your records once a month or once a quarter, often before a VAT return. That takes the work off you. The trade-off is that questions about old transactions come in batches, sometimes weeks after the event, when receipts are harder to find.
Our guides on what a bookkeeper does and bookkeeper vs accountant explain the roles. For costs, read how much a bookkeeper costs in the UK.
OPTION 3: A DAILY SERVICE
This is what Wenzo does. We work in your existing software every UK working day. That covers bank reconciliation and receipt matching, monitoring your finance inbox, following up missing invoices and receipts, and a monthly financial summary.
Because the work happens daily, questions are small and fresh. Your accountant gets clean records at year end. The comparison is set out in daily vs monthly bookkeeping, and the full service is on our daily bookkeeping service page.
SIGNS YOU NEED HELP
Owners rarely decide to outsource on a quiet day. It usually follows one of these:
If your books are already months behind, we review them first and quote a catch-up before the daily routine starts. Receipts are often the hardest part, so see how to organise receipts for your business.
YOUR SOFTWARE, YOUR SETUP
You do not need to move systems. We work in 14 accounting and receipt packages. Your subscription stays in your name, and you invite us as a user. See the full list on our software page, or go straight to Xero, QuickBooks or Sage.
If you are not sure which software to choose, read can you use Excel for Making Tax Digital. For business type, see bookkeeping for sole traders and bookkeeping for limited companies.
SMALL BUSINESS BOOKKEEPING PRICES
Use your annual turnover to find your starting point. We review your records, your volumes and how paperwork reaches you, then confirm one fixed monthly fee in your quote. One business entity per package. Above £5 million turnover, we give a tailored quote.
FOR SMALL BUSINESSES
Daily bookkeeping for sole traders, consultants and small businesses who want their time back.
£295/ month
Talk about EssentialsFOR GROWING BUSINESSES
For growing agencies, trades and service businesses with more people, purchases and paperwork.
£495/ month
Talk about PlusFOR ESTABLISHED BUSINESSES
For established teams who need someone keeping the day-to-day books moving across their business.
£795/ month
Talk about ManagedPrices are per month, with the final fee confirmed in your quote. Your software subscription is separate. Catch-up work, tax returns, payroll, CIS returns, VAT return submission and statutory filings are quoted separately. Full pricing details →
TALK IT THROUGH
Tell us how your business is set up, which software you use and where your paperwork arrives. In a 30-minute call we will talk through what your records need and the monthly fee that fits. You can also call 020 7123 9335, email [email protected] or message us on WhatsApp.
Book a free callChecked against GOV.UK in October 2026. Rules change, so check the source before you rely on a figure.
