I have a client who ceased trading on the 30 March 15 which coincides perfectly with the end of his accounting year.
I am just preparing the end of year accounts and self assessment but as expected there are a lot of transactions still taking place, payments being received and invoices being paid.
I have informed HMRC of the end trading date and as such there will only be a liability to complete a tax return for 14-15 but how do I deal with the transactions still taking place. Some payments will be written off to bad debts but some will still likely be paid. Can I treat everything as accruals ?
Any help would be appreciated
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Yes creditors, accruals, unpresented etc. It is easier preparing them when the dust settles but if you know already about bad debts then you should be able to achieve pretty accurate figures.
Up to date bank statements, sales and purchase paperwork may confirm any figures you're not sure about.
So I can prepare accounts and include the creditors/ accruals etc. to be included in this tax return (there are a lot!)
I agree it would be so much easier to wait a while before doing the final accounts in particular with the business ending trading right at the end of the tax year as it doesn't give the option of anything which may still come in/ go out but client keen to get things finished off.
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I think perhaps you should be persuading the client to wait - the final accounts need to be accurate . If he wishes to speed things up then he should be chasing any o/s items so they drop through to your more quickly. If things dont pan out as he anticipates what then - will he submit revised accounts/tax returns?
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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.
You should check out answers with reference to the legal position
