Yes, the working papers belong to you, not the client.

In the event of an investigation you may use your working papers to prove a point as to how a figure was derived. But, thats down to you to prove the point, not to be handed to the client for them to prove it (I doubt if even my better clients would understand my working papers).

Generally my working papers consist of spreadsheets including lots of Pivot tables.

Every client has their own folder and every client folder has a folder for each company year, and each year has a sub folder for storing evidence.

Remember to backup regularly.

HTH,

Shaun.

Working papers are anything kind of supporting evidence for the accounts. For example, I normally have a fixed asset section, stock section, debtors section, bank section, creditors section - I include my tax comp in the creditor section.

Fixed assets will contain the asset registers, and you may wish to keep copies of asset invoices

Debtors will have a list of all items that make up the debtors figure on the balance sheet - a debtors list, and any other documentation that support the other figures, and a prepayments list

Bank would list all bank balances, and have copy statements for the year end, to support those

Creditors will have a list of all items that make up the creditors figure in the account and might contain a creditor list, the VAT and PAYE control accounts, copy loans and HP agreements (just the main copy that shows the interest to be charged etc), a HP or loan schedule (which I create to show how the HP/loan will be worked each year til its fully paid) the tax comp, accruals list and directors loan account, if applicable.

At the front of the file, I would have the Sage TB & PL, or the excel file - whatever I had worked from, plus my journals and copy accounts. I usually put the nominal ledger at the back, if there is one.

I keep a paperless office as far as possible, so I have an excel file which contains my schedules and excel worksheets. I store this as Shaun does, in an annual folder, along with the excel or sage documents which I have worked from. If the client sends me any other information, its stored here too.