VAT / Management Accounts

The below help article has some best practice guidance on the VAT and Management Accounts processes.


Planning:

  • Copy forward the data on these schedules however review the information to ensure it is still relevant and no further updates are required.
  • Ensure the Manager Review checklist has been added and then allocated to the relevant reviewer.

Working papers:

  • VAT closing balance reconciliation - Cash accounting clients only - Remember you need to show the VAT on opening debtors and creditors at the last year end as opposed to last period.
  • VAT Turnover Reconciliation - FSC difference will always be part of this reconciliation.  Always set FSC income nominal to not to appear in TO section at top of reconciliation.  Then, remove the net of the FSC that will appear in Box 6 under ‘Turnover in the VAT return but not in the bookkeeping’ section.  This ‘removes’ the net figure included in box six as this figure does not appear in turnover.

Checklists:

  • No need to add detail to every line – only when a red triangle appears or if something felt to be noted for the attention of the reviewer.  For example, if no PE calculation prepared but client has received exempt income, noting this is wayleaves only and PE calculation not required.  Common sense to be used.
  • Remember upon finalisation to add final return, snip of approval received from client and the submission confirmation within ‘Checklist – VAT Completion’.  Do not mark as N/A.  Fully complete ‘Checklist – VAT Completion’.

Finalisation:

  • Once the reviewer has checked final return/submission and approval showing in SF/all checklists complete and they have signed off 4b, the reviewer will lock SF and bookkeeping system.  This will be completed even if not at 100% (will be due to ‘To Do’ roll overs).

Other:

  • Please unlock and relock bookkeeping system as required to post into relevant period thereafter, checking whether year end accounts have been started if items relate to previous accounting year.  Do not post to previous year if year end accounts have commenced.  Speak to manager of job in these instances.


NOTE: If there is anything in this help article that needs updated please get in touch with the Silverfin Experts.