General
Business
Preparing
for Your Accountant
Whether
we are producing your accounts or carrying out your annual
audit, being prepared for us will ensure our work is carried
out smoothly and efficiently and with the minimum disruption
to yourselves.
You may also be able to help by preparing some of the routine
schedules for us. This will mean our time can be better spent
advising you on the running of your business.
We highlight below many of the ways in which you can help.
It is however important for you to discuss these ideas with
us since all of the suggestions may not be applicable.
Setting
the Scene
Keeping
us informed
We will be better prepared ourselves if we know of any changes
within your business which could affect our work. These could
include changes in your:
- product
or market
- business
strategy eg pricing policy
- bookkeeping
system
- key
personnel.
What
we need
If you know what information we need to be able to complete
our work you can make sure it is available.
We can decide together what you can prepare for us and what
we will need to prepare for ourselves.
Better communication between us will help to minimise misunderstandings
and avoid unnecessary work.
Timetable
We need to agree a suitable timetable in advance. This gives
us both a chance to be properly prepared.
However, if you find yourself behind schedule let us know
as soon as possible so that the timetable can be rearranged
if necessary.
How You
Can Help
Books
and records
Setting up and maintaining your books in an organised manner
will help us to extract quickly and easily the information
needed to prepare or audit your accounts. It will also enable
you to see at a glance the state of your business.
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Consideration
of the following points may improve the organisation
of your records:
- totalling
and balancing your books at regular intervals will
help you spot and correct any mistakes
- analysing
your payments and receipts so that information can
be easily extracted
- filing
your invoices in a logical order (numerical, alphabetical
or date) to make it easy to find any one of them.
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Procedures
By establishing and maintaining certain procedures you will
be able to keep a better control over your records and your
business. It will also mean we can cut down on the work we
need to do which may save you some money.
We can help you set up these procedures initially and once
established you will be able to carry them out yourself. These
procedures will include control accounts, reconciliations
and stocktaking.
Control accounts
Control accounts record the movements of cash, debtors and
creditors by using the monthly totals from your cash book
and sales and purchases summaries.
The cash control account will show how much cash the business
has at the end of each month.
The debtors or sales ledger control account will show how
much your customers owe you at the end of each month.
The creditors or purchase ledger control account will show
how much you owe your suppliers at the end of each month.
Reconciliations
Reconciliations help to ensure that the figures in your books
are complete and accurate. Therefore if produced on a regular
basis they will help you spot any errors which can then be
corrected before we examine your records. Some of the records
which will need reconciling are
- bank
accounts
- control
accounts
- suppliers'
statements.
Stocktake
If your business carries any stock you will need to count
it at least once a year. To ensure that the count is carried
out efficiently and accurately you should consider the following
points:
- stock
items should be stored neatly and logically to make counting
easier
- all
staff involved in counting should be given clear instructions
- try
to minimise the movement of stock during the count. If possible
deliveries in and out should be withheld until the counting
has finished
- spot
checks should be performed during the count.
If you
hold large amounts of stock we may need to attend the stocktake
and perform our own checks.
Schedules
There are a number of schedules which have to be produced
in order that the accounts can be prepared and/or audited.
We can prepare all of these schedules ourselves but obviously
if you were to produce them it would save time.
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You
may wish to consider the preparation of some of the
following schedules:
- a
detailed list of additions and disposals of fixed
assets with a copy of the appropriate sales and purchase
invoices attached
- schedules
showing each item of stock held, the quantity, unit
value and total value. Indicate any stock items which
are old or damaged
- a
list of your debtors at the year end including how
much they owe you and how long they have been outstanding.
Indicate any which are unlikely to pay you
- a
schedule of all bank and cash balances at the year
end, together with all the bank statements for each
bank account
- a
list of creditors which should include Customs &
Excise and the Revenue as well as the usual business
suppliers.
Not
all of these schedules will be applicable to your business
and therefore before doing anything you may wish to
discuss this with us.
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How We
Can Help
There
are undoubtedly many advantages to be gained if you are better
prepared before we commence our work.
We will be able to complete our work in less time. This will
mean less disruption to you and your staff. In addition we
will be better placed to provide you with useful and constructive
advice regarding the development of your business.
However, perhaps the most rewarding of all these advantages
will be the fact that your books and records will provide
you with more useful information which will help you make
better informed business decisions.
If you would like to discuss these procedures any further
or would like us to provide further assistance with your monthly
or quarterly accounts please call us.
Top
of page
For information of users: This material is published
for the information of clients. It provides only an overview
of the regulations in force at the date of publication, and
no action should be taken without consulting the detailed
legislation or seeking professional advice. Therefore no responsibility
for loss occasioned by any person acting or refraining from
action as a result of the material can be accepted by the
authors or the firm.
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C o m p l e t
e 
Regulated
to carry on audit work for a range of investment business
activities by the Institute of Chartered Accountants in England
and Wales