Hi, I have a potential new client but i am a bit wary about taking him on.He owns a couple of burger vans and has been trading for the past seven weeks.The bit i am unsure about is that he does not put any takings through a till he just keeps them in a plastic tub and pays for all his materials this way and keeps whatever profit is left for himself at the end of the week. He says he is going to get a business account sorted out next week and start paying the takings into it . If i were to start his books now i only have his word about what his takings have been for the past few weeks as he has written some figures down .On face value i do not think he is trying to decieve anyone as he has all reciepts for what he has paid out but i do not want to do anything that is going to come back and bite me later on . I was just wondering if anyone has been in a similar situation or if anyone has any comments or advice it would be appreciated thanks stephen any
take the appointment. Your new client isn't doing anything wrong, there is no requirement for him to even bank his takings whether or not it is good practice. He does however need a reasonably robust bookkeeping system and I am sure you can advise him on that, he should at the very least keep a daily takings sheet. Unless the figures look completely out of kilter as regards margins etc I would take him at his word. By all means play devils advocate with him if he is declaring a low profit and you happen to know he drives a Ferrari and lives in a mansion or at least say ' the revenue often look at cash businesses like yours and they would want to know how you pay for your mortgage, utilitity bills etc', but it is not our jobs to automatically disbelieve our clients (even if we do!!)
Hi Rob, Thank you for your helpful coments.From my initial meeting with him i have no reason to disbelieve what he tells me . I will sort him out with some takings sheets etc so at least there will be something written down. thanks again stephen
