Proper Books And Records
The requirement that a company keep proper books of account is contained in section 282 of the Companies Act 2014. Section 282 provides that every company shall cause to be kept adequate accounting records, whether in the form of documents or otherwise that –
- correctly record and explain the transactions of the company,
- enable, at any time, the assets, liabilities, financial position and profit and loss of the company to be determined with reasonable accuracy,
- enable the directors to ensure that any financial statements of the company required to be prepared under section 290 or 293, and any directors report required to be prepared under section 325, comply with the requirements of the Companies Act, and where applicable, Article 4 of the IAS Regulation: and
- enable those financial statements of the company so prepared to be audited.
- entries from day to day of all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place,
- a record of the assets and liabilities of the company,
- if the company’s business involves dealing in goods - (i) a record of all transactions whereby goods are purchased and whereby goods are sold, showing the goods and the sellers and buyers (except buyers of goods in ordinary retail trade) in sufficient detail to enable the goods and the sellers and buyers to be identified and a record of all the invoices relating to such purchases and sales, (ii) statements of stock held by the company at the end of each financial year and all records of stocktakings from which any such statement of stock has been, or is to be, prepared and
- if the company’s business involves the provision or purchase of services, a record of all transactions whereby services are provided and whereby services are purchased, to whom they were provided or from whom they were purchased (unless provided or purchased by way of ordinary retail trade) and of all invoices relating thereto.