I'm just inputting onto Sage for a new client who's moving from what I'll call a manual 'system'.
I don't have any B/F balances as yet as the company Accountant is going to put these through and make neccessary adjustments through at a future date...
What I'm wanting to know is the ideal way to deal with fuel receipts and accomodation receipts etc... and there are lots!
Some of these receipts are receipts from the general business and have been paid out from the company bank account and can can clearly be matched from the bank statement. However, some of the receipts have been provided by self employed workers who have provided the receipts to the company as expenses. The SE workers have been paid their expenses by cheque, but no concise details have been made... eg cheques paid to them are for numerous receipts lumped together!!!
As I don't know which payments relate to which receipts... what's the best way of dealing with this as I'm already aware the bank is not going to reconcile.
All the large P/L Invoices have been paid by cheque or debit card from the company and there's a 'system' so no problem there... it's just the 'small' receipts...
Does the total of the cheques sent match the total of the fuel and accomodation receipts? If it does I would just enter the receipts into the expense accounts as if they were induvidual transactions and put the cheques through the bank ledger accounts as you would any other payments... The books will still balance at the end.
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Please correct me if I'm wrong... I am only human sucking up knowledge... Sometimes bits leak out!
I haven't been given the company's cheque book stubs or bank statements as yet, just simply been asked by the company Accountant to post everything into Sage P/L wise... Judging from the 'organisation' I've found so far I'm not sure the stubs will be that detailed as to which receipts etc they are paying, and that overall it will balance.
My main problem is having a bag of fuel receipts of which I cannot tell which ones are for the company, and which are for the 3 self employed workers so I don't know how to split eg, 7300 vehicle fuel... or 8250 Sundry Expenses!?!
The company is going to put an Expense system in place by means of a form to have receipts etc stapled to and handed in... but they're not at that stage quite yet!
Any other advice on the best way forward with a system for SE workers and their expenses would be most welcome!
So once you have the separate receipts which are attached, do you pay the SE worker by ONE cheque for everything including their hours? That's what's been happening here... and as far as posting the receipts goes, do you add an extra code to them so they can be cross referenced to each SE worker? or just simply put them through as eg, fuel, accomodation and mark them with the cheque number which paid them so you can cross ref in the bank account?
You are treating them exactly the same as any other supplier - the expenses should probably go to a 5000 nominal as a cost of sale, it is up to the business whether they need them to be split down by expense type or grouped together in one nominal. The entries will all be tied back to the supplier account for tracking purposes.
