Hi!
I am currently doing books for a Sole Trader, he is also employed and paid through PAYE. His bank account is used for both business and personal use and as it stands is bank statement will not reconcile with his books. I have all the receipts for purchases
(business only) and invoices for monies received.
Are reconcilliations a must in this case?
Can someone advise me on the best way to complete the books?
Should I advise my client to open a business account?
Many thanks,
Stacey x
You need to make a judgement whether it will be worthwhile doing a bank reconciliation. If you have all his receipts for business and the majority of bank transactions are pvt, you won't add a lot of value by doing a bank rec. You could spend a lot of time recording private transactions!
Re the business current account, again it depends upon the volume of transactions. If the bank are happy, and it's not impeding you from completing accounts/tax return, then it would be a cost he could avoid.
