Books of account
This query is : Resolved
06 April 2018
What books of account to be maintained by interior designer
06 April 2018
Following details are required to be maintained
Cash and Credit Card Accounts
Make sure all accounts are reconciled as of the last statement date. Review outstanding checks/deposits to ascertain that they are really outstanding-it’s possible you might have recorded something twice- for any checks older than a few months you might want to follow up with the payee to see why they have not cashed the check. Void and/or reissue the check if necessary.
Accounts Receivable
Review an open invoice or accounts receivable report-ascertain that all items are accurate and collectable. Send reminders to your clients and write-off uncollectable accounts.
Suspense or Uncategorized Expense Accounts
These accounts should be used as clearing accounts and should usually zero out- any balances should be reviewed.
General Ledger Income and Expense Accounts
Review income and expenses for proper categorization-this is where you make sure you didn’t inadvertently classify your accounting fees as an entertainment expense. Take a quick look at all general ledger activity and do further investigation if something doesn’t look correct.
If your accounting system uses the accounts noted below, run a report for each and review:
Work in Progress
Make sure that all items listed in this report are really in progress- if the item is complete and appearing in this report you probably forgot to invoice the client.
Accounts Payable
Ascertain that all payables are accurate- small amounts remaining can mean that you originally entered one amount in your purchase cost and that your final vendor invoice was different–review your vendor invoice- if necessary, adjust your purchase cost to equal the final vendor invoice.
Client Deposits
Check all clients’ funds available and item deposits for accuracy-you might realize you have client money that has not been applied to an outstanding invoice or that you owe a refund to a client.
Vendor Deposits
Ascertain that all vendor deposits appear reasonable.
Reviewing your records in November and again at the end of the year will not only put you in a better position at tax time but will also give you a more accurate profit picture for the current year. It will also help you to budget for next year.
Cash and Credit Card Accounts
Make sure all accounts are reconciled as of the last statement date. Review outstanding checks/deposits to ascertain that they are really outstanding-it’s possible you might have recorded something twice- for any checks older than a few months you might want to follow up with the payee to see why they have not cashed the check. Void and/or reissue the check if necessary.
Accounts Receivable
Review an open invoice or accounts receivable report-ascertain that all items are accurate and collectable. Send reminders to your clients and write-off uncollectable accounts.
Suspense or Uncategorized Expense Accounts
These accounts should be used as clearing accounts and should usually zero out- any balances should be reviewed.
General Ledger Income and Expense Accounts
Review income and expenses for proper categorization-this is where you make sure you didn’t inadvertently classify your accounting fees as an entertainment expense. Take a quick look at all general ledger activity and do further investigation if something doesn’t look correct.
If your accounting system uses the accounts noted below, run a report for each and review:
Work in Progress
Make sure that all items listed in this report are really in progress- if the item is complete and appearing in this report you probably forgot to invoice the client.
Accounts Payable
Ascertain that all payables are accurate- small amounts remaining can mean that you originally entered one amount in your purchase cost and that your final vendor invoice was different–review your vendor invoice- if necessary, adjust your purchase cost to equal the final vendor invoice.
Client Deposits
Check all clients’ funds available and item deposits for accuracy-you might realize you have client money that has not been applied to an outstanding invoice or that you owe a refund to a client.
Vendor Deposits
Ascertain that all vendor deposits appear reasonable.
Reviewing your records in November and again at the end of the year will not only put you in a better position at tax time but will also give you a more accurate profit picture for the current year. It will also help you to budget for next year.
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