We are a private limited company working with disabled people in a textile based training business. 99% of income (£110,000) is from day care contracts. 1% of income is from fancy dress sales/hires, alterations and repairs of textile goods, sale of goods (bags) made by clients as part of training. 5 part time employees, no spare money, operating for 20 years with ingenuity, stubbornness and low wages. Through necessity all aspects of Company managed in house.
Employee that did accounts and year end moved on with no notice. Management accounts already done by Director, payroll, invoicing, VAT, PAYE, all taken care of. Self-taught Sage accounts package took some time however daily entries now no problem.
Year end, mostly no problem, following previous year end procedures in Sage and have knowledge of CT600 completion and HMRC / Company House requirements.
Apologies for the long introduction.
Stock/Inventory is the problem we have and no amount of googling can help us. The fancy dress was bought years ago and it was written off over a period of two years, assuming this would be the lifetime of the product, for several years we bought and sold and hired fancy dress, income from this dropped dramatically with the advent of ebay and internet sales and we stopped buying fancy dress a few years ago. However, as we hire fancy dress and can repair most costumes we still have a fairly large stock of say 400 costumes, none of this is shown on our balance sheet anymore as it was written off years ago? None of the products made by clients seem to be shown as stock, our balance sheet shows zero stock. Our products are made from donated materials; we rarely need to purchase materials, when we do make purchases they are mainly for training purposes. Many of the products made by clients are for themselves or are part of the training we do, costing these products would be impossible.
What should we be doing to record our stock, if indeed we should be doing anything?
Hi Juli
So hows about an intro before we start. We always ask newbies!
Usual stuff we ask - what prof body do you belong to, do you work just for this company/is this your own company (you mention it being privately owned), or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
Whatever you do - do NOT rely on Google for answers to Accounting questions - a lot of information out there is well out of date and there have been many changes in the last two years in terms of Accounting standards to be used for final accounts preparation.
__________________
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
