Legal Requirement - under the new system of self assessment, the keeping of books is a must and it's illegal not to.
Control of Business - It's almost impossible to know whether you are winning or losing, have to pay bills, people owe you money, etc if you don't keep books
Cheaper Accounts - well presented books will reduce accountants bills but check with them that the method you intend to use is the best for both of you - often they may have a system that they prefer or software they can download to your computer to use.
If you Sell the Business books are necessary to indicate the value and worth of the business
Finance - If you require loans or finance you will need to show books
VAT / PAYE - records need to be kept for inspection
Methods for keeping books
Patented System - such as Simplex, Everite, Collins, etc. usually 52 weeks plus Profit and Loss Account as summary
Analysis Book - Can be adapted to own requirements
Double Entry System - Involves Ledger Cards and works on the same system as computerised accounts
Computerised Systems - a wide variety available such as Sage, MYOB, DO$H, etc a download of a free, single user book-keeping system is available through http://atlantic-coast.com/downloads/3451.zip
Your Own Method - using a note book or folder. Just ensure that al incoming go on the Left side of the book and all outgoings are entered on the Right side of the book.
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