I am a novice bookkeeper and have recently taken on my first client (a small teaching business, trading as a Ltd company). The client's business sells on credit, so I would be raising regular sales invoices at the end of each calendar month. However, some customers take notes of the received number of lessons, and at the end of a month transfer the relevant amount into the business' bank a/c (client does cross-check amounts received). The business has NOT been sending out invoices to those customers in the past (I understand that this was to keep down admin work).
The client has now asked for advice whether it is ok to continue NOT to invoice those clients, who keep track themselves. Please can you help with the following, as I'm not sure how to advise:
1) Could the client's business face any problems when using the procedure described above? Or is it ok for the business to continue to NOT send out invoices to all it's customers (although it offers its services on credit)? 2) If it IS indeed ok, how would I treat these transactions in the bookkeeping system? Immediate cash sales?
So hows about an intro before we start. We always ask newbies!
Usual stuff - what prof body do you belong to, what qualifications, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role, how long in this role/previous role? That sort of thing. Helps get to know you but also how best to pitch answers.
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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
Thanks for that, Joanne.
No formal qualification and no affiliation to a professional body (yet). Studied privately with a bookkeeper / accountant, various textbooks and online courses. Here to learn and share relevant experiences with others.
As far as I am aware there is no legal requirement to issue an Invoice unless VAT registered however it is certainly good business practice to do so.
I would advise any business to issue Invoice's as they provide vital information in the case of a dispute or indeed an investigation from HMRC, and they will also make your job a lot easier as the bookkeeper.
If by the sound of it you have just set up as self-employed and you do not belong to a professional body you will need to apply to be covered for MLR by HMRC and I would also recommend getting some Professional Indemnity Insurance set up.
HTH
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Thanks for that, Joanne. No formal qualification and no affiliation to a professional body (yet). Studied privately with a bookkeeper / accountant, various textbooks and online courses. Here to learn and share relevant experiences with others.
So which prof body are you looking to train with?
Are the bookkeeper/accountant bods acting as mentors on an ongoing basis?
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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
