Factsheets

Setting the Scene

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Books and records
Setting up and maintaining your books in an organised manner will help us to extract quickly and easily the information needed to prepare or audit your accounts. It will also enable you to see at a glance the state of your business.

•  Consideration of the following points may improve the organisation of your records:
•  Totalling and balancing your books at regular intervals will help you spot and correct any mistakes
•  Analysing your payments and receipts so that information can be easily extracted
•  Filing your invoices in a logical order (numerical, alphabetical or date) to make it easy to find any one of them.

Procedures
By establishing and maintaining certain procedures you will be able to keep a better control over your records and your business. It will also mean we can cut down on the work we need to do which may save you some money.
We can help you set up these procedures initially and once established you will be able to carry them out yourself. These procedures will include control accounts, reconciliations and stocktaking.

Control accounts

Control accounts record the movements of cash, debtors and creditors by using the monthly totals from your cash book and sales and purchases summaries.

The cash control account will show how much cash the business has at the end of each month.

The debtors or sales ledger control account will show how much your customers owe you at the end of each month.

The creditors or purchase ledger control account will show how much you owe your suppliers at the end of each month.

Reconciliations

Reconciliations help to ensure that the figures in your books are complete and accurate. Therefore if produced on a regular basis they will help you spot any errors which can then be corrected before we examine your records. Some of the records which will need reconciling are:

•  bank accounts
•  control accounts
•  suppliers' statements.

Stocktake

If your business carries any stock you will need to count it at least once a year. To ensure that the count is carried out efficiently and accurately you should consider the following points:

•  stock items should be stored neatly and logically to make counting easier
•  all staff involved in counting should be given clear instructions
•  try to minimise the movement of stock during the count. If possible deliveries in and out   should be withheld until the counting has finished
•  spot checks should be performed during the count.

If you hold large amounts of stock we may need to attend the stocktake and perform our own checks.

Schedules

There are a number of schedules which have to be produced in order that the accounts can be prepared and/or audited. We can prepare all of these schedules ourselves but obviously if you were to produce them it would save time.

You may wish to consider the preparation of some of the following schedules:

•  a detailed list of additions and disposals of fixed assets with a copy of the appropriate sales and purchase invoices attached
•  schedules showing each item of stock held, the quantity, unit value and total value. Indicate any stock items which are old or damaged
•  a list of your debtors at the year end including how much they owe you and how long they have been outstanding. Indicate any which are unlikely to pay you
•  a schedule of all bank and cash balances at the year end, together with all the bank statements for each bank account
•  a list of creditors which should include HMRC as well as the usual business suppliers.

Not all of these schedules will be applicable to your business and therefore before doing anything you may wish to discuss this with us.

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For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.