Company Accounts Query

[mnisbet]

Hello,

I intend to get an accountant to help me with these matters, but just wanted a heads up first. This is my first year after setting up the company so it is all new to me, and have never had to file accounts etc before.

My first question is in relation to the accounts. I run a club promotion/djing company. All the income is from door sales. However due to the nature of clubs there is no set door price.. some people get in free if we're having a quieter night and need to fill the room a bit, some people get discounts on entry (students etc).. at present I basically just get given the money at the end of the night, and input this into an excel spreadsheet, there's no other record. I have also kept receipts of incurred expenses. Is this sufficient records to pass onto an accountant to create the yearly account? it would be abbreviated and non-audited as it is a very small company with less than £20,000 profit?

Is this then sufficient accounts for the corporation tax return? How is the corpration tax accounting period set?

I appreciate any advice - as I say I'm new to this and want to stay within the rules. This forum looks as if it will be very helpful.

[Joyous]

Hello mnisbet

Yes this is sufficient info to produce a set of accounts but it’s not ideal. For starters you say that “I basically just get given the money at the end of the night, and input this into an excel spreadsheet...” How do you know that you’ve been given all of it? Hopefully you’ve got a company bank account that all receipts and payments will have gone through.

Handing an accountant a box of receipts is an expensive way of getting your accounts done as you’ll be charged for getting your year’s records drawn up as well as for your accounts. You should try and analyse your spending into the various expenditure categories before handing it over. An Excel spreadsheet should suffice.

You need to tighten up your method of recording door takings. The Inland Revenue have expectations of the profit margins they expect for various business sectors and they’re always suspicious of cash based businesses. If you’re ever unlucky enough to be the subject of an enquiry the onus will be on you to prove that you have declared all your takings. If you can’t prove your figure they may well determine a figure for you.

Regards

Joy