Account Books

If you're running a business or managing finances, account books still play a practical role — even in an increasingly digital world. Whether you're self-employed, running a limited company, or just starting out, understanding what account books are, how they help, and your legal responsibilities around financial records is key.

What Is an Account Book?

An account book is a physical or digital ledger used to record financial transactions. Traditionally, businesses would manually write down every sale, expense, and financial movement into books organised by account type — such as sales, purchases, or cash.

While digital systems have largely taken over, many small businesses, freelancers and sole traders still use account books to stay on top of finances, especially when just starting out.

There are different types of account books, including:

• Cash books: for recording money coming in and going out

• Sales and purchase ledgers: tracking invoices and payments

• General ledgers: summarising all accounts for financial reporting

Account books help build a paper trail that supports your business decisions and financial reporting.

Why Are Account Books Helpful?

Even in a digital era, physical or structured financial record-keeping offers clear benefits. Account books allow you to stay organised, see your financial position at a glance, and track everything in one place. They’re also useful for budgeting, identifying spending patterns, and planning for tax.

If you’re ever audited by HMRC or need to apply for funding, well-kept books will back up your figures and show that you’ve been operating properly. They're also a great starting point for businesses not yet ready to invest in full software.

Where Can I Purchase Account Books?

In the UK, you can buy account books online or in-store from:

• WHSmith

• Ryman

• Amazon UK

• Office Outlet

• Staples UK

• Specialist stationery suppliers

Look for options like cash books, duplicate invoice books, petty cash logs or hardback ledger books. They're often inexpensive and come in ruled or columned formats.

You can also download printable templates or purchase PDFs designed for bookkeeping from platforms like Etsy or Not on the High Street.

What Are the Alternatives for Bookkeeping?

While traditional account books are still in use, most UK businesses now rely on digital tools. Alternatives include:

• Accounting Software: Tools like QuickBooks, Xero, FreeAgent, and Sage allow you to track income, expenses, VAT, and more — often linked directly to your bank.

• Spreadsheets: Excel or Google Sheets are popular with sole traders and startups, offering flexibility for tracking without recurring costs.

• Bookkeepers or Accountants: Outsourcing to a professional is another way to manage records, especially for growing businesses.

• Mobile Apps: Some apps are designed specifically for self-employed workers or side hustles, letting you log receipts and mileage on the go.

Digital options often come with automation features, reporting dashboards, and cloud backups that improve accuracy and save time.

What Are My Legal Requirements for Record Keeping?

In the UK, HMRC sets strict rules for financial record-keeping. Whether you’re self-employed or running a limited company, you must keep accurate records of income, expenses, VAT (if registered), payroll (if you employ staff), and any tax calculations.

For sole traders and partnerships, financial records must be kept for at least 5 years after the 31 January submission deadline of the relevant tax year. For limited companies, the retention period is 6 years after the end of the relevant financial year — or longer if:

• Records relate to something still running (like a loan or asset)

• HMRC has launched a tax check or investigation

• You've bought something you expect to last more than 6 years

Failing to keep proper records can lead to fines, penalties, or interest charges.

If you're VAT registered, Making Tax Digital rules mean you must now keep digital records and file returns using compatible software. For everyone else, paper records are still acceptable — as long as they’re accurate, complete and retrievable.

Final Thoughts

Account books, whether physical or digital, are essential for tracking the financial heartbeat of your business. They help you stay compliant, prepare for taxes, and make better financial decisions. Whether you stick to pen and paper or upgrade to software, what matters is that your records are consistent, accurate, and legally sound.