year end bookkeeping

beavis182

just finishing off my friends bookkeeping so he can do the self assessment. I have the usual overly large shoebox full of receipts etc, some of which im unsure what i can put thru and dont wanna mess it up.

He has randomly put in receipts for stuff like a new bed, petrol, previously paid HMRC self assessment receipts, clothing, stationery and even a receipt for his wedding party! and maybe a few others relating to anything but his business.

Am probably being stupid but do i just not log the obvious ones like wedding party and new bed etc (oh, he owns a car spare parts business if thats any help)

Thanks soo much in advance for any help on the above. :-)

JJ43

As long as it can be justified to be a business expense, then you include it.

Hope that helps !

beavis182

yea of course, any help is perfect thank you.

ok, so when he has dinner/restaurant receipts its ok to use that as a "business dinner" but stuff like a new bed, he cant really condon(sp) that as a business expense..

also, silly question but would it be a good idea to use the nominal codes in sage for different things like postage, stationary, insurance.... so that i can help him see what different areas are costing his company?

JJ43

Hi,

`Business Dinner` - you are allowed a certain amount per year as `entertainment`, not sure how much exactly - your companies accountant should know the limit, but my previous boss used to draw out £450 and note it down as `christmas` expense in the `UK entertainment` nominal in sage if that`s any help !

Nominal code in sage - yes it would be a good idea to get into the practice of breaking down expenses such as printing, postage, telephone, office stationery/computer consumables, insurance such as vehicle and premises. In fact give each expense a separate code, use the chart of accounts to insert new codes into the appropriate sections.

I find that the more detailed information you can provide a client in terms of where their money is going, the better it is for them to make decisions.

Hope this helps !

Julie

farmergiles

You can put his business dinners down as an expense but you have to add them back for tax purposes. It just gives him an idea of what he is spending on "business lunches". The household expenses, such as new bed, would be treated as personal drawings, again keeping him informed of his personal spending. Once again you would add it back for tax purposes.

beavis182

thats a great help. will def start using the nominal codes for his next years accounts. I must also remember to log my invoices for what im charging him to do his accounts :-)

thanks for all the help