I am just in the process of taking over the books for a business that up until now they have been a jumble of mismanaged excel spreadsheets that make very little sense (except to the retiring person who has been doing them)
The only way I can see to get them properly organised is to start with the opening balances on all of the a/c's from the beginning of the financial year and work through them up to date (which means I have roughly 2 months of paperwork to go through). The problem I had when I started trying to do this is that quite a lot of the a/c's are not paid up to date, obviously with purchases for resale I can just enter the invoices into the purchase and individual supplier ledgers but what do I do with a/c's like the stationary supplier and the newspaper they advertise in that have not been paid yet but been invoiced for? do I have to wait until they are paid up to date until I can enter them into the accounts?
I'm only 2 assignments into ICB Level 2 and starting to feel a bit lost but agreed to take on this job to help a friend :( please throw me a lifeline
You would basically do the same as you did with the supllier accounts.
You would have debited the Purchases a/c and credited the individual Supplier account
With the advert, you will need to create a supplier account for the newspaper that carries the advert, then Dr Advertising a/c and Cr the new supplier account.
The same applies to the stationery. Create a new supplier account in the name of the stationery supplier, then Dr Office Supplies, and Cr the new stationery supplier account.
Don't want to panic you but you say in your OP that you are only two assignments in to ICB level2. It might be adviseable to check with ICB that you are not breaching their membership rules. You may also fall foul of MLR regulations, as you will not be registered with anyone for supervision.
Is it against the rules to do work without a practise licence or does it just mean that your PI insurance will not cover you.....and I'm guessing there will be no PI insurance at this stage.
So if you're 100% sure the friend will not sue you then there shouldn't be a problem.
Should add I would advise against taking this friend on as a client. Unless they are fully aware of your level of studies.
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Never buy black socks from a normal shop. They shaft you every time.
Thank you for your replies, I will check with ICB that I am not breaching any membership rules, I didnt think I would be as my friend is employing me as a Business Manager not a book-keeper per say. Until I'm qualified I'm just going to be putting his accounts into a proper double entry format for his accountant so that the information he gives them makes a bit more sense than in previous years. My friend is also fully aware of what stage in my studies I am at :)
When you say "employing" you, you are meaning he is taking you through the payroll and you are not acting in a self employed manner? If that is the case then I can't really see what the ICB can do. If not, I don't think it will matter what you call the role.
I'm not the best at expressing my posts in a polite manner - so just pretend this post has been written in a diplomatic manner (even if it doesn't come across that way).
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Never buy black socks from a normal shop. They shaft you every time.
Peasie is right, if you are employed (on the PAYE) then you would be fine in terms of MLR etc, but obviously be carefull you don't make mistakes on areas of bookkeeping you have not studied yet.
If you are doing it for free, or billing your friend, you need a license.
If you need clarification you can call the ICB on 0845 060 2345 and speak to an AMLR advisor.
Thank you for the clarification James, one of my tutors at Ideal Schools has already said he will give me any support I need on points I come across that I have not yet studied, I have also spoken to my new bosses accountant as well who has been helpful. I forgot that you guys from ICB are on here, its a really good forum, think I may be using it a lot in the future :)
