I have finally got started with my first client. Not such a smooth start though. The client has moved from manual bookkeeping over to Sage instants. Purchase invoices have been entered incorrectly so have had to be reversed off. Unallocated payments posted when no invoices posted.
I've got my work cut out with this one but I suppose we can't have it easy all of the time. I am having to go as far back as April and get all invoicing up to date.
The problem I have also got is there are no opening balances from last years accounts. Once the invoicing is up to date I am going to enter the closing bank balance from last year and try and get the bank reconciled. Not sure about reconciling debtors and creditors though as no balances entered.
Congratulations on your first client Elaine! It may be a difficult one and a daunting prospect, but it will be good experience ....there's nothing like being thrown in at the deep end sometimes. And there's always this friendly bunch on here to help out
Can you not get any opening balances from last year's accounts from the accountant...or are they not done yet?
Last years accounts haven't been done yet although I should be able to enter the closing bank balance as the client has got the statements. I think I will feel happier when I can get the bank reconciled and also the debtors and creditors.
Hi I had similar experience with my first client and know first hand its annoying when this sort of thing happens, but is a great way of learning systems better and such a buzz when you know its all right in the end. Good luck with it all and here's to a smoother 2nd client! Chesh
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
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The plot is thickening. I have now been asked to input all of last years invoice, receipts etc on to Sage.
I need to try and cost this up but how on earth can you cost a job when you have no idea how many invoices are involved without counting them all. I suppose I could count a couple of months worth and use this as an average but then I still don't know how long this is going to take. Obviously the client will have to agree this and agree the cost.
This is on top of catching up with this years accounts that haven't been input since April which was the start of the new year.
I wan't to make sure I am not out of pocket but don't want to rip the client off. I was thinking of quoting something like £300 to catch up with this years and then about the same for all of last years. I shouldn't be out of pocket as it is just my time that is involved. After all that is caught up I was thinking of charging £50.00 per month.
Would appreciate any input/advice/comments on the matter bearing in mind I am a new start up so not experienced at costing etc. Used to large companies where you just come in and do your job.
As you say the best way to cost up is to work out how many invoices you have, how long it takes you to process and what your hourly charge then build in a bit extra and you should be able to work out a price.
Will also depend how you post. If you are posting all the invoices to the creditors control account then you would first need to set up the suppliers, then post the invoice, then pay the invoice via the bank module then reconcile the bank. Other option is just to post the amount straight from the bank as given you dont need to maintain for credit control purposes at the moment then this will be the quickest way to record ie one posting rather than two for each transaction.
The suppliers are already set up and some of the payments have been posted even tough there were no invoices posted. I have posted and allocated the payments using the bank, pay supplier etc. I am not sure if I should work one month at a time, input all invoices, post monies and allocate and then reconcile bank. As last years accounts have not been completed and were done manual I would need to do a one sided entry for the bank balance and I think I know how to do that. I am going to take the balance off the bank statements for the end of the last trading year and then I think you enter it through TB from Accountant? I am not 100% sure as I am at work and Sage Instants is at home. Also I need to reconcile the VAT, it has been submitted manually from the manual records but the client has claimed VAT on motor insurance when she shouldn't have so I think an adjustment will have to be made to the next return to reflect that. I have not done a VAT return or reconciliation on Sage before so don't feel very confident in attempting my first one. I will try and look at the way I do the ones at work and follow the steps for that/read the notes on Sage.
Is it possible to enter the previous years accounts in to Sage? The accountant is suggesting this and it makes sense but not sure if you can do it or how? Can you help on this?
Why would you need to enter last year's accounts on SAGE?
It isnt necessary if the year end accounts are being worked on. (assuming that they are being worked on by the accountant?)
All you need is to post the opening balances from the accountant once the accounts are finalised. Posting last years accounts onto SAGE is unnecessary work.
Last years accounts are still at the clients premises. They haven't even been looked at by the accountant yet. It's quite a large turnover company so I am not sure if that is why he wants it on Sage. £300k ish. I understand it might be a bit late to start doing it now after the year has finished and we are 7 months in to this years accounts.
Thats probably why he wants them on Sage because they haven't been touched. Are there any other records at the client's premises like Spreadsheets that he has kept for his business. Just trying to think of things that may make the task easier.
There is some sort of manual records but haven't asked to look. I am going back in a couple of weeks to do more work and I am supposed to be having a meeting to discuss bringing the work home so that I can get stuck in to it. It will take me forever if I have to keep visiting the client as she sits with me and talks whilst I am working.
To be honest, as long winded as it may seem it would be better to input everything as I think there will be errors.
Bit frightening from your clients viewpoint if they have £300k turnover and they arent keeping their records up to date on a monthly basis. Though really the accountants place to advise them of this.
Personally dont see the benefit of putting into SAGE as the whole point of putting into SAGE or any other accounts package is in order to give the client up to date management info eg profit and loss, list of debtors, list of creditors, etc. Personally if I was you I would probably just do whatever to get last years accounts up to date and get the accounts up to date for the next 6 months and then start posting in SAGE from there. As really reconciling the bank and posting the sales and purchase invoices for last year is really a waste of time.
Though at the end of the date if for you, the accountant and the client to decide.
My client wanted me to computerise everything. Four months later I am still chasing the creditor opening balances, as without these I can't reconcile the bank and get him the completely accurate P&L reports that he wants. Mind you it took two months to even get his bank statements as he 'didn't want me to see the bank accounts as they were private'. He's come around to that one though and realises if he wants me to do his bookkeeping I need to have his bank statements. Still chasing balances though!!!
Good luck Elaine. I, personally, quite like these 'challenging' clients though, especially as mine is paying by the hour lol.
I've just had one of those that didn't want to hand over the bank statements. Hes an annual and didn't see the point in it but I stuck with it and got them in the end!
