Company records might not be exciting, but they are essential. For limited company directors, maintaining accurate records is not just good practice. It is a legal requirement. It also plays a major role in how efficiently your business runs, how confidently you make decisions, and how HMRC and Companies House view your business.

Good records help you stay in control. Bad ones lead to penalties, missed deadlines, and unnecessary costs.

This guide explains which records your company must keep, why they matter, what can go wrong, and how to manage them properly without adding unnecessary admin to your week.

What Records Your Company Must Keep

There are two broad types of records you need to maintain: statutory records and financial records. Both are important, and both must be up to date.

1. Statutory Records

These are records that relate to your company’s structure, officers, and legal status. They include:

• A register of directors

• A register of shareholders and shareholdings

• A register of People with Significant Control (PSC)

• Records of board meetings and written resolutions

• A register of charges (if applicable)

• The company's registered office address and confirmation of any changes

Statutory records must be kept either at your registered office or an approved alternative inspection location. They are subject to review and must match what is on file at Companies House.

2. Financial Records

These relate to the day-to-day operations of your company. They include:

• Sales invoices and income records

• Purchase invoices and expense receipts

• Bank statements and reconciliations

• VAT records (if applicable)

• PAYE and payroll records

• Corporation Tax calculations and submissions

• Asset purchase records and depreciation schedules

You are legally required to keep most financial records for six years, or longer if HMRC is conducting an enquiry or if they relate to a transaction spanning multiple accounting periods.

Why Keeping Records Matters

Many small business owners see record keeping as admin. But accurate records do far more than meet legal requirements. They affect everything from compliance and reporting to funding and growth.

Here is what good record keeping supports:

Accurate tax filings: If your records are complete and current, you will submit accurate VAT returns, Corporation Tax returns, and payroll reports. That means fewer questions from HMRC and no unexpected bills.

Timely submissions: You will be in a better position to meet deadlines for annual accounts, Confirmation Statements, and tax returns.

Better business decisions: Accurate records help you see how your business is performing. You can spot trends, identify issues early, and make decisions based on data—not guesswork.

Funding and investment: If you apply for finance, you will be asked for management accounts, tax returns, and bank statements. Keeping everything organised speeds up the process and strengthens your application.

Avoiding penalties: Missing a filing deadline or submitting incorrect information because of poor records can lead to fines or increased scrutiny from HMRC.

Common Mistakes Businesses Make

Many directors and business owners are not trying to ignore their responsibilities. But without a clear system, these are the problems we see most often:

• Forgetting to record director changes or new share issues

• Using incorrect or outdated SIC codes in filings

• Storing receipts in multiple places without matching them to the books

• Losing track of expense claims, especially for mileage and home use

• Relying on the bank account balance instead of proper reporting

• Forgetting to update the PSC register after changes in ownership

• Filing annual accounts without checking that statutory records match

• Thinking that software alone will handle all legal obligations

These problems are not just about admin. They affect your company’s legal standing and its financial visibility.

What an Organised Company Record System Looks Like

Keeping good records is easier when you have a system in place. That does not mean you need complex software or a full-time administrator. It means clear habits, regular reviews, and reliable tools.

Here is what that setup should include:

Cloud bookkeeping software: A cloud-based platform allows you to track income, expenses, bank activity, and invoices in one place. It should link to your bank account and allow for real-time updates.

Document storage: Store receipts, invoices, contracts, and payroll documents digitally in a central folder or system. Use consistent naming so they are easy to retrieve.

Director and shareholder register: Maintain a formal register of your directors, shareholders, and PSCs. Update it whenever there is a change. Keep these records stored with your company formation documents.

Regular reconciliations: Check that your bookkeeping matches your bank account. Reconcile at least once a month to avoid errors or surprises.

Scheduled checks: Block out time each quarter to review your statutory and financial records. Confirm that everything is accurate, backed up, and ready for your accountant or Companies House.

Delegated responsibilities: If you work with an accountant or bookkeeper, agree on who handles what. You do not need to do everything yourself, but you are still legally responsible for getting it right.

What to Do After a Change in Your Company

Any change to your company’s structure, ownership, or registered details needs to be recorded and reported properly. This includes:

• Adding or removing a director

• Changing your registered office address

• Issuing new shares or changing ownership

• Appointing a new PSC or updating an existing one

• Changing your business activity or SIC code

These updates should be made as soon as possible and reflected in your next Confirmation Statement. Some changes must also be reported separately using specific forms.

Delaying or forgetting to report changes can lead to mismatches on the public record, which creates problems if your business is reviewed by lenders, HMRC, or partners.

How AFG Helps You Stay Compliant and In Control

At Allied Financial Group, we help business owners focus on growing their companies while we manage the background structure that keeps everything running smoothly.

Our support includes:

• Full company secretarial services

• Maintenance of director, shareholder, and PSC registers

• Filing of Confirmation Statements and annual accounts

• Accurate and consistent bookkeeping

• Setup and integration of cloud accounting tools

• Support with payroll, VAT, and Corporation Tax

• Reminders for filing deadlines and compliance reviews

We tailor our systems to suit your business. Whether you are running a small consultancy or a growing team, we make sure the essentials are always covered.

No confusion. No missed filings. Just a clean, clear record of how your business is built and how it performs.