Company Records to Preserve Before Insolvency
A practical checklist of records directors should preserve when the company is under serious financial pressure.
Published by Hedwyn Ltd. General information for directors of companies registered in England and Wales.
Does this sound familiar?
Records are spread between the accountant, cloud software, company devices and personal email. Some bookkeeping is behind. You are worried that missing information will make it harder to explain decisions.
The short answer
Do not wait for perfect records. Preserve what exists, secure access and make an honest list of gaps. Directors have record-keeping responsibilities, and an insolvency office-holder may need information about the company's finances, assets, liabilities and conduct.
Preserve these records now
- Statutory accounts and current management accounts
- Accounting ledgers, journals and audit trails
- Company bank, card and finance statements
- VAT, PAYE and Corporation Tax records and correspondence
- Customer, supplier and employee records
- Contracts, leases, guarantees and funding documents
- Board minutes and records of important decisions
- Director's loan accounts, dividends, expenses and payroll
- Asset registers, valuations and disposal documents
- Insurance, pensions and intellectual-property records
- Company devices, cloud accounts and relevant correspondence
Practical safeguards
Export cloud data where appropriate, but preserve the original system and audit trail. Record who controls each account and where backups are held. Keep company and personal information appropriately separated. Do not alter, delete or backdate records.
If a third party holds information, note the provider and contact details. If records are incomplete, document what is missing and the steps being taken to retrieve it.
What to avoid
- Destroying paper files or wiping devices
- Recreating documents as though they existed earlier
- Hiding connected-party transactions
- Giving one adviser an incomplete version while withholding other records
- Delaying advice until the bookkeeping is fully repaired
What happens next?
Review director investigations, directors' duties, and what to expect.
Authoritative sources
- GOV.UK: company and accounting records
- GOV.UK: company director responsibilities
- Insolvency Service: insolvent company investigations
This guide provides general information for directors of companies registered in England and Wales. It is not legal, financial, accounting or insolvency advice.
This guide is general information, not legal, financial, accounting or insolvency advice. See how our content is prepared.