JUST A QUERY ON ABOVE, WE KEEP THE BOOKS FOR A MOBILE FRANCHISEE AND THE ABOVE COSTS SHOULD BE PREPAID? THE INVOICE DOESN'T STATE ANY PERIOD, SO ASSUME IN GENERAL THESE ARE OVER 12 MONTHS?
Hi Raj
You need to clarify what period the invoices cover, you shouldnt assume. I would actually go back and ask for the invoices to state exactly what the service is for/what period it covers - most do already, so its pretty poor that they havent.
If you are correct, yes prepay.
PS - please can you take your caps lock off when typing! Thanks
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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
We have been trying to get this confirmed by this massive mobile franchise and they put us through to call centres , further referring etc.. I have heard as a general practice within Mobile industry such costs are for a year in general.
You are correct, I shouldn't assume this are over 12 months unless we have this confirmed.
Hi Raj
Just a thought as its a franchise model and I find most franchisors are quite arrogant and unhelpful (just my experience), perhaps the information regarding the timing of the fees/period covered might be in the Franchise agreement, so it might be worth having a look in there. Also you should have access to their accounts department, although again the ones Ive dealt with get really snippy if you dare to ask a question, so I feel your pain! Good luck finding out!
__________________
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
