This may be one of those cases where the role of the bookkeeper stretches further than just recording transactions. You may need to be proactive and take on a more advisory role and tell your client what is the best way to record his cash transactions. You know his business better than HMRC does, if you can't follow his transactions then what will HMRC's take on his business affair will be in case of an inspection?
Just something to think about.
Fabs
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Boomerang Bookkeeping
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Debit Cash, Credit Sales. I'd want to explain though, how any outgoings from the bank are paid for. With no deposits, the drawings would remain after all cash expenses are paid. What line of business is it? best regards, Tim
I have a couple of clients like this, I'd get him to fill in a weekly sheet, showing Income, Expenditure, Drawings and maybe a float. I'd also recommend they keep a diary, I don't know what your client does for a living but a few of mine even write the weather down (street market traders).
As a general point, the more evidence they keep the better and it's not unreasonable for the client to be expected to do the above.
This is assuming he doesn't have a receipt book, to prove the cash he should have received.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
