Choice of Accountant and Procedures

Your choice of Accountant is very important because they will advise you on all financial aspects of running your business including Annual Accounts, Profit and Loss, Management Reports, Taxation, Payroll, National Insurance, Self-Assessment, VAT, cash and debtors. We recommend that you use an Accountant who will provide an accounting and monthly book keeping service for you too.  Kalma can recommend an accountant or you can choose your own.

Effective up to date financial information is a key part of being able to make effective decisions for your business.  Key items to monitor include sales, costs (by area), money collection and cash flow.

Sales Ledger

The sales Ledger keeps a record of your sales and the monies received. It is very important that this is kept up to date so that your accounts can be prepared and for you to see the sales information on your business.

Purchase Ledger

The Purchase Ledger tracks your business expenses and all purchase receipts and invoices should be kept too.

Banking and Reconciliation

This is the process by which you check your bank statements against monies paid out and received. All purchases should be paid for by cash, cheque, credit card or standing order. This is a useful check to ensure that all monies paid into your account have cleared, and that you haven’t had any unauthorised payments go out of your account.

Accounts Procedures

The franchise agreement requires the franchisee to provide regular and accurate accounting information to the franchisor.

Your accountant will prepare your annual accounts and your monthly management accounts. Your accountant assuming you use one, should:

• Input all your supplier invoices and payments
• Input sales receipts
• Raise customer statements (if required)
• Undertake your credit control (if required)
• Complete your VAT returns
• Undertake a monthly reconciliation of your accounts
• Prepare your monthly accounts