Clear and Simple Record Keeping
Posted on 26th August 2021 at 09:43
Every accountant loves a client who presents clear and simple records to help them in producing the year-end accounts and tax position.
Whilst each type of business and letting will be different we have listed below a few simple guidelines to help make your records easy to follow saving your accountant time and you money.
• Always have a separate business/ letting account. All income and expenses relating to the business or letting should be put through just one account. Ideally, this account should not be used for personal expenditure but if money needs to be withdrawn for you personally this transaction should be highlighted so the entry is correctly accounted for.
• Choose your accounting system to suit your needs and budget. This can either be software such as Xero, QuickBooks, or a spreadsheet analysis; you could even opt to have your bookkeeping done with your accountant or a bookkeeper.
• Invoice sequentially, it will enable you and your accountant to easily check all invoices have been provided. If an invoiced is raised and not used just write void across it for clarity.
• If using a manual system of bookkeeping note the invoice paid with the relevant date to enable payments and sales to be matched quickly.
• On any accounts spreadsheet analyse costs by category e.g. phone, travel, purchases, advertising etc. Please see the cash book template included.
• Include receipts for your costs in your information and provide details as to what the item/service is where this is not a common cost or supplier.
• Finally review the package of details you are providing to your accountant, to ensure that you have presented all items clearly and made explanations where something unusual has occurred.
Following these steps will not only give you a good, clear accounting system from the outset but give your accountant an opportunity to provide an efficient service for the year-end.
Share this post: