Does anyone have any experience in bookkeeping for a cafe/tea room? I have a new client who has taken over the francise for a local cafe. Most of their purchases for stock are cash as they haven't got any supplier accounts set up as yet which is fine.
But how shall I ask them to present the sales figures to me? Do I need them to give me till reciepts, I'm a bit concerned that I won't be able to account for the VAT on the sales properly. Will the sales all be 20%? I find the whole food VAT situation confusing.
If anyone could give me some advice I would appreciate it.
I am making the assumption that your client is registered for VAT and that being the case all sales made through the cafe for food and drink consumed on the site will incur VAT as there is a service being provided. However if food is purchased on a takeaway basis only the VAT on vatable foods is charged ie cans of drink, crisps, chocolate etc.
Thanks Roz, yes they are VAT registered, from what I can see the amount of take away foods that would not be vatable would not be a lot, I think I will pop in and have a word with them.
Watch your pricing, I have a client with a restaurant and for the volume they are time consuming. Many receipts have VAT at standard and zero rate on them, so one payment can be 30 plus receipts per month. My client goes to the shops several time a day so lots of little petty cash receipts.
Sales: I get a total for the daily takings, split into several groups, so these are relatively easy.
Payroll and RTI, they are in the group that RTI takes longer for, because use a lot of students so have lots of starters and leavers. They pay weekly and overal have approx 30 total employees over the year so can no longer use HMRC free pay tool, which they used last year as they only have 2 paying PAYE & NI.
They use cash to pay for as much as they can including all wages, to reduce their bank bills. I do not attempt to get their petty cash to agree!
Thanks
