A new company started trading from Feb.18(last month), I have two basic payroll questions, could someone help me:
1) Why do directors salaries and directors NI need to post in P&L separately from other employees? Is this tax law or for other reason? Can I put directors salaries and NIC together with other employees' in P&L?
2)Salary for February paid in first week of march, so February P&L shows no salary expenditure, this expenditure shows in March P&L. Therefore, salaries payroll relates in March will be in April's P&L. I feel this is not correct.
1) You don't say the size of the company? Just because it only started last month does not dictate expected first year turnover.
2) Accruals.
Please explain the name that you have given yourself on the forum.
Also please add your first name in your signiture and give a brief introduction to the site including which professional body you are with so that we know at what level to aim responses.
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Shaun
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.
1) Why do directors salaries and directors NI need to post in P&L separately from other employees? Is this tax law or for other reason? Can I put directors salaries and NIC together with other employees' in P&L?
Ah, well, this forum is for professionals not business owners.
You would be wise to have a chat with your Accountant. 1) accounting regs. So keep separate 2) accrue, don't just key them as they are paid, that way they appear when they should.
Your Acountant can provide a template for (2)
No idea why you mentioned and linked to the softwares website (Shauuuunnnnnnnnn, can you do your thang!!!)
Edited to correct a typo
-- Edited by Cheshire on Thursday 15th of March 2018 10:30:37 PM
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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
It's company law rather than tax law although they do support each other.
There are disclosure exemptons for smaller entities but keeping them seperately from the get go is a good approach to adopt.
I've not included any detail as you have not revealed your professional body so I don't know how detailed to get.
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Shaun
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, unless you are operating on a cash basis, revenue and expenditure must be recognised as incurred or earned, not as paid or received.
the regulation is to prevent manipulatin of financial reporting, and by extension the tax system by earnings management.
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Shaun
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.
Ah, but who but one of us would understand what I write Joanne!
The poster may now need to go to an accountant to ask them to kindly decode what the heck someone just told them.... Or sit on the internet reading up revenue recognition and then decide that an accountant is probably a better idea... Or realise that this is just the tip of the iceberg and there is a huge amount that they don't know saitting just below the waterline ready to sink their business so an accountant seems a real good idea...
Are you seeing the commonality coming through there
We don't make widgets so widget makers (or more often nowadays people who make "businesses" out of telling widget makers what colour their toilet paper needs to be) should stop guessing at what we do and realise that there's a reason that it takes so many years. And so much blood, sweat and tears to earn our letters.
Soft... Pah... Bring me the skull of a Cloud software developer. I need my morning red bull.
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Shaun
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 suspect the OP will just google it and believe what he reads-dangerous game of course.
It seems to be a common theme that we we make everything up as we go along, we do exams for the hell of it, the whole process is not dictated by regulation and legislation and that Google and the man down el pub know sooooo much better, plus we adore giving information for fee to so called entrepreneurs, as we are perfectly capable of living on thin air.
Especially when we can wander the street and get free food from the local sushi bar, just by wandering in and demanding it.
10.11 am....got to be a record for the red bull unless of course you havent slept for 24+ hours!!
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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
