Directors

Was asked this week to review a set of accounts, including in this I was told to ensure that all director allowances were made. How do I know or what are the best ways to ensure director remuneration is take in the correct way?

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  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    How do I know or what are the best ways to ensure director remuneration is take in the correct way?

    Ask for the payroll reports for the accounting period and reconcile these reports with the money drawn by the director. Any additional amounts withdrawn by the director should tally with expense claim forms and/or dividend vouchers. The dividend vouchers should be backed up by management accounts showing a sufficient amount of after tax profit.
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