Advice Needed

HaleyHaley Just JoinedRegistered Posts: 3
Hi

Can anyone give me any advice.
I have just sat the IAC June exam and am now looking to gain my self some practical experience by volunteering my services to my friends and local charities.
I have been offered the chance to do the accounts for a self employed electrician and was thinking that cash based accounting would be more appropriate.
Can anyone give me any tips.
All advice is welcomed

Comments

  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Cash accounting is not generally accepted as reliable because under UK GAAP (which all sole traders/partnerships/Ltd co) follow, you must prepare accounts on an accruals basis.

    The revenue would also have a problem with this as sales could be understated - especially if there are cash sales.

    Kind regards
    steve
  • HaleyHaley Just Joined Registered Posts: 3
    Thanks for the advice
    I will do some research on UK GAAP and will stick with accounting on an accrual basis.
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