Before setting up any business you will need to learn basic accounting skills, without this you may find yourself in financial trouble without even knowing it. Setting up a basic accounting system can help you keep track of the company finances and know where your money is going. If you are a novice when it comes to accounting practices it will be advised that you seek professional help. With very strict tax rules it is very important to know what is needed to be paid over to the Inland Revenue. Seeking advise from a qualified accountant can set you on the correct path and be sure you are following the guidelines for the future. Most companies will seek financial help before even starting a business to check that money would be involved in doing so. Keeping up to date accounts is vital for any business, not only from your prospective but for HRMC also. A business will be able to tell how successful and profitable it is from its accounts. If you have a large business bank account but owe a lot of it out keeping up to date accounts will show you who you owe money to and who owes you. With out this in place you will not know who to chase for money and when to do so. Keeping accounts is vital but keeping them up to date is just as much so. Using live accounts are easy to work from the accounts in the past. As they are in current time it can make chasing and making payments a lot quicker. As much as keeping accounts benefits a business it is also a must if you are following the proper code of conduct for business. Any business operating under Companies house and is a registered Limited company each will have to hand over their accounts to be checked. This is so the HRMC can check how much tax, incorporation tax and VAT may be due to the government. If you can not keep up to date accounts you may find yourself with hefty fines. Accounting rules are there to make sure you are paying the correct taxes.