Small business accounts/sandwhich burger bar

kdr7
kdr7 Registered Posts: 3 New contributor ?
Hi there, A friend has asked me to look at there receipts and produce some form of accounts for them. Whilst im confident in my ability im bothered about where to start so I have organised all expense receipts and logged them on a spreadsheet by category. from what she has told me there was only her working there and only paid her self so I thought that this would be a simple self assesement case. however it appears she has paid a wage into her bank then some money into a business account. if this is the case and we went down the self assessment route does the banked cash for the business count towards her earnings or just the wages she has paid herself? the only other issue is she has no record of turnover so I can only assume that this is expenses + wages + banked cash. hope this makes sense and im greatful for any input you kind folks have

Comments

  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Hi kdr7
    Is your friend a sole trader or a ltd co? Could she be mistaking "wages" and "drawings"?
    If you could provide more info about the business we may be able to help further.
  • kdr7
    kdr7 Registered Posts: 3 New contributor ?
    She is a sole trader from what she has told me worked on her own. Her words to me were I paid myself approx. £800 per month and then the rest, usually around £600 went into a business account
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    As a sole trader, what she pays herself are actually drawings which can not be deducted to calculate her profit (if she had an employee to whom she paid proper wages i.e if she was registered for PAYE it would be different). Ideally, she should keep a record of her income (i.e till receipts, banked cash or cheques?) and really be able to produce some detailed expenses. Transferring money from one account to another is irrelevant as far as producing accounts is concerned.
    I hope this helps.
    MN
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