Unfortunately record keeping isn't the most fascinating area of running your own business, but it's a very important one nonetheless. You cannot underestimate the negative effects of poor record keeping on your business including paying excess tax, something that could potentially spell disaster for your business. At a minimum you have a legal requirement for everyone who pays tax to keep the records they need to fill in a tax return, for VAT registered businesses there are more specific requirements.
Simply put, though, it can be a challenge and frustrating at times, but it just makes good business sense to keep well organised and accurate records. If you can get this right in the early stages by setting up a system and sticking to it you'll find the process is a lot simpler to keep up-to-date.
The financial side of running a business can be very scary to those just starting out. Entrepreneurs coming from the security of an employer who sorted all the tax and national insurance are often daunted by the prospect of taking on these tasks. This is an important topic, which any business owner must take very seriously.