New here with a couple of questions!

Sarah-Lou
Sarah-Lou Registered Posts: 141 Dedicated contributor 🦉
in General accounting discussion
Hello everyone this is my first message on MIP, I am currently waiting for my MIP status to be granted (and praying it is!) but already have a couple of clients.

Couple of questions...

1) Is it worth buying final accounts software? Seems to be mixed feelings on this as to whether it's worth having software draw up the accounts or whether to just draw it up yourself in excel?

2) Client has come to me from another book keeper, there is a credit balance on a supplier from the previous tax year (not the one I'm completing now), the previous book keeping has no information regarding this (aka not interested anymore), the client can't remember anything about it and the supplier in question a) doesn't have information going back that far and b) said clients balance is cleared with every transaction they make (which it is going by this tax year). I'm using sage (much prefer manual book keeping!) i'm not sure how to clear the balance so it was 0 at the beginning of my clients tax year.

Thank you in advance :o)

Sarah-Lou

Comments

  • coojee
    coojee Registered Posts: 794 Epic contributor 🐘
    Do you mean a debit balance? Supplier accounts should have a credit balance on them. If it is a debit balance (ie the supplier owes them money) then you'll have to write it back this year:

    CR Creditors and
    DR probably purchases but depends on how the balance arose

    1. It may have been duplicate cheque entry (note entry not actual cheque) which created the overpayment if this is the case you may have a corresponding unpresented cheque so DR Bank and get rid of both at the same time.

    2. They may have entered a credit note from the wrong supplier into this supplier account and then only corrected the other supplier account. If so DR Purchases (because the CR note has been entered twice)

    3. They could genuinely be owed the money by the supplier but the supplier is now saying that it's too long ago and they're not going to pay it. Again a DR to purchases is the correct entry.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    Is it worth buying final accounts software? Yes, yes and yes!
    Look at VT accounts, its utterly brilliant and amazingly good value for money.
    It's money well spent in terms of time saving vs. doing your own thing in excel.
  • Sarah-Lou
    Sarah-Lou Registered Posts: 141 Dedicated contributor 🦉
    Thank you both of you, have given up tonight as eyes are dropping! Will check rather thoroughly tomorrow and get the balance sorted.

    My finger was poised over the 'buy now' button on VT accounts today but couldn't quite make myself press it! Will go for it tomorrow. Thanks!

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