Below is a guide to just some of the tasks that your Account Manager might undertake before your draft accounts can be prepared.
Enter all sales and purchase invoices and receipts onto relevant software (unless this is done by the client).
Ensure that payment has been received for all sales invoices. Check with the client if any payments to the client remain outstanding.
Ensure that all purchase invoices have been paid. Check with the client if any invoices appear to be unpaid.
Complete a bank reconciliation (if there is a business bank account).
Reconcile the VAT paid if VAT-registered, to ensure that the correct VAT has been paid.
Monitor sales to ensure that a client is registered for VAT if the VAT threshold is reached.
Reconcile the PAYE if PAYE-registered, to ensure that the correct PAYE has been paid.
Reconcile CIS if registered for CIS, to ensure that CIS payments are up to date and that the correct amount has been paid.
Check with client as to whether there are any expenses that we should expect to see in the draft accounts, but appear to be missing, e.g. mileage, phone and internet use.
Submit VAT if VAT – registered (unless client does this).
Submit CIS if CIS – registered (unless client does this).
Prepare CIS deduction statements for sub-contractors.
Add payroll journals to the appropriate software package used by or, on behalf of, the client.
Prepare management accounts to show client how the business is doing at a certain point in time, including calculating an accrual for how much Corporation Tax is due at that point in time. Prepare working papers at the end of the financial year, from which the draft accounts will be prepared.
Check allocation of any dividends and issue dividends where appropriate to cover an overdrawn Director’s Loan Account.
Answer any client queries as they arise.
Use the above information as a starting point in the preparation of the client’s personal tax return.
Please contact your Account Manager if you have questions regarding any aspect of the above information.