Books of account

This query is : Resolved

Share Report Follow Query Ask a Query

narmatha.k

narmatha.k (Querist)
Follow

06 April 2018 What books of account to be maintained by interior designer

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

06 April 2018 Following details are required to be maintained

Cash and Credit Card Accounts

Make sure all accounts are reconciled as of the last statement date. Review outstanding checks/deposits to ascertain that they are really outstanding-it’s possible you might have recorded something twice- for any checks older than a few months you might want to follow up with the payee to see why they have not cashed the check. Void and/or reissue the check if necessary.

Accounts Receivable

Review an open invoice or accounts receivable report-ascertain that all items are accurate and collectable. Send reminders to your clients and write-off uncollectable accounts.

Suspense or Uncategorized Expense Accounts

These accounts should be used as clearing accounts and should usually zero out- any balances should be reviewed.

General Ledger Income and Expense Accounts

Review income and expenses for proper categorization-this is where you make sure you didn’t inadvertently classify your accounting fees as an entertainment expense. Take a quick look at all general ledger activity and do further investigation if something doesn’t look correct.
If your accounting system uses the accounts noted below, run a report for each and review:

Work in Progress

Make sure that all items listed in this report are really in progress- if the item is complete and appearing in this report you probably forgot to invoice the client.

Accounts Payable

Ascertain that all payables are accurate- small amounts remaining can mean that you originally entered one amount in your purchase cost and that your final vendor invoice was different–review your vendor invoice- if necessary, adjust your purchase cost to equal the final vendor invoice.

Client Deposits

Check all clients’ funds available and item deposits for accuracy-you might realize you have client money that has not been applied to an outstanding invoice or that you owe a refund to a client.

Vendor Deposits

Ascertain that all vendor deposits appear reasonable.
Reviewing your records in November and again at the end of the year will not only put you in a better position at tax time but will also give you a more accurate profit picture for the current year. It will also help you to budget for next year.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now