So what’s involved when we prepare a set of accounts?
Well the method we use depends on the type of records our client keeps. At one end of the spectrum we have those that use accounting software and at the other end is those who just give us a bag of receipts. Most people however have some sort of record keeping system in place however basic.
Whatever the type of records the principles behind preparing accounts are the same and it’s all about making sure everything balances
We start by giving the records an initial overview to ensure the basic record keeping system is reliable enough to use for the basis of the accounts preparation. Whilst doing this we will also keep an eye out for any unusual transactions or anything that just doesn’t look right (call it accountants nose!)
Once this is complete we post the figures onto our in house accounts production software to give us what is known as a trial balance. This is a list of all the individual accounts balances (e.g bank account, debtors, fixed assets, sales).
Next we check each account balance is correct. For example with the bank balance we will check it agrees to the bank statement and if not find out why, for debtors we check the individual debtor balances to see if there are any bad debts which need writing off. Once we have checked and agreed all the individual balances, which forms the bulk of the accounts preparation work, we can then prepare a tax computation to calculate the clients total tax liability.
For limited companies a full and abbreviated set of financial statements then needs to be prepared. Fortunately our software does the bulk of this work however there is still normally some manual adjustments we need to make to ensure they comply with the necessary standards and guidelines.
Once we have a set of draft accounts we send these to the client for them to review. We also offer all clients a meeting at this stage if they want to discuss the accounts or any other business matters further.
Once the client is happy they sign the accounts, we submit them to the necessary authorities and then send them a final copy for their records. If the client uses accounts software we also need to ensure their system is updated to reflect any adjustments made by ourselves to the year end figures so the balances at the start of the following year are accurate.
Then next year we start the whole process again!
“Knowledge, expertise and professionalism second to none”
After completing my AAT’s I was eager to expand my accounting knowledge. Paul kindly offered his services as a mentor on a one 2 one basis. The level of support and training that Paul gave has proved invaluable as I am now able to produce management accounts and have the confidence to put these into practice. Paul has played an integral part in supporting my development and the new skills I have gained will be critical to my future career and also provide a support to my ongoing studies. His knowledge, expertise and professionalism are second to none. I would recommend his services to anyone, as a mentor or accountant!Charlene Bennett
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Paul and Mike at Michael Paul Accountants have handled my accounts for several years now and have been absolutely pivotal in getting my affairs in order for me to successfully move forward. They have been patient when I’ve asked daft questions and thorough in their dealings on my behalf. As a consequence I know I’m in a much better place now than I was before we worked together.They were, are and will be a very important part of my business and long may that continue. Their coffee’s not up to much though.Gordon Whistance
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