The document provides information for a bookkeeping service taking on their first client, including forms that need to be completed upon engagement like an engagement letter and AML checks. It discusses record keeping requirements and how to organize unorganized accounts, focusing on income, purchases, and journals. It outlines how to present the completed work including adjusting journals, lead schedules for assets, liabilities, and an analytical profit and loss report. Finally, it lists other services that could be provided like accounts payable, receivable, cash flow forecasts, and utility bill reviews.

1. Black Bag Job
Taking on your first client

2. Agenda
 About me – One Practice Bookkeeping Service
 What forms do you need to complete upon engagement?
 Records Keeping
 Where do you start with un-organised accounts?
 How do you present the completed work to the client?
 Other services you can provide

3. What forms do you need to complete
upon engagement?
 Meet the client, IF NOT use enhanced due diligence from Accountant or someone else
 Complete AML Online to record client (also for when you finish with client)
 Have an engagement letter, one for client and one for yourself
With regard to RTI the client should confirm that all information is correct and that he/she
accepts all responsibility for all data passed to the agent that is incorrect/late and that the client
will pay any fines/penalties or interest that relates to his or her omission/wrong or late
information and late payment of PAYE and NIC
Get ID’s – photo and utility bill. HMRC or Bank statement very good
 64-8 This is so HMRC will accept written correspondence and phone calls
(only tick the sections that apply to you or you WILL knock out the other Agent)
 P46/P45 – if doing payroll for all employees
 P46 (Car) – Complete this form if there is a charge that affects car benefits for an employee
earning at the rate of £8,500.00 a year or more, or a director for whom a car is made available
for private use. The form is required when an employee gets their first car, when they cease to
have a car at all and when the number of cars available to them changes (they get or cease to
have a second car).

4. What forms do you need to complete
upon engagement- P11d/P11dx
 P11d - Use form P11D if you’re an employer and need to report end-of-year expenses
and benefits for employees or directors who earned £8,500 or more. P11Ds are used to
report benefits provided and expense payments made to employees by employers that
are not put through the payroll.
 P11dX – If an employee is reimbursing expenses to themselves this saves a P11d needing
to be done by 06 July annually.
IF YOU DO NOT WISH TO PROVIDE THE ABOVE SERVICES I WOULD STATE THIS IN
YOUR ENGAGEMENT LETTER
 Standing order (I pro-forma any catch up work and commence the standing order after
that work period)

5. Record Keeping
 How to keep your records
There are no rules on how you must keep records. You can keep them on paper, digitally or as part
of a software program (like bookkeeping software).
HMRC can charge you a penalty if your records aren’t accurate, complete and readable
How long to keep your records – business records if you’re self-employed
You must keep your records for at least 5 years after the 31 January submission deadline of the
relevant tax year.
HMRC may check your records to make sure you’re paying the right amount of tax.
Example
If you sent your 2013 to 2014 tax return online by 31 January 2015, you must keep your records
until at least the end of January 2020.
What records to ask for:
Bank statements Wages summaries
Cheque book Petty cash receipts/book
Paying In Book Credit card receipts/ statement
Sales Invoices
Purchase Invoices Other - discuss

6. Where do you start with un-organised
accounts?
 Income:
Sales invoices/Debtors
Post all invoices, match customer receipts from bank statements, paying in books
Quote-Job number-invoice number (risk of tax avoidance if missing documents)
Till receipts
Bank statements only – NOT acceptable if does not reconcile to another internal system
that supports all income as you don’t know if all income covered
 Other Income:
Wages reimbursements Interest received Vat Refunds
Discuss other types of income Bank loyalty rewards Grants

7. Where do you start with un-organised
accounts?
 Purchases
Post all invoices, match supplier payments from cheque books, bank statements, debit card
payments, bill payments, BACS
I tend to treat an A4 document as a supplier account. If you see regular purchases from
the same shop i.e. Tesco for mileage then you may want to set them up.
 Other bank payments
Bank charges, bank interest, loan interest
PAYE
VAT
Nett Wages
HP payments
Loan payments
Directors Loan a/c (Discuss petty cash un-accounted for)
Petty Cash
Other - discuss

8. Journals
 Depreciation
Look at notes in the accounts to see what method to use
 HP/Loan Interest
Review the paperwork and keep on file for the Accountant
Divide the total interest by the number of instalments and journal monthly
 Prepayments
Rates and insurances (Usually 10 instalments)
Telephone line rental
Annual/quarterly subscriptions – bin collections, alarms, fire inspections etc

9. Journals - continued
 Accruals
Accountancy
Bookkeeping
Bank charges, loan interest
Electricity (could be prepayment)
Water (could be prepayment)
Telephone calls
Regular billing not received in the period you are completing

10. How do you present the completed work
to the client
 Year End Adjusting Journals
EXAMPLE: 1
Print out your own opening trial balance
Complete adjusting journals as advised
Closing trial balance to be the figure as shown in the Company Balance Sheet reserves, to date
EXAMPLE: 2
Compare your own opening Trial Balance with closing Trial Balance and post appropriate DR/Cr entries
This Accountants accounting software shows the movement in the year. I have had to keep a running
YTD
With my reserves for the year, added to the YTD I know I have the closing reserves to present to the
Accountant

11. How do you present the completed work
to the client - continued?
EXAMPLE: 3
As only several journals I have posted each separately
Every P+L nominal has been posted to reserves
Closing trial balance to be the figure as shown in the reconciliation

12. How do you present the completed work
to the client- Lead Schedules
 ASSETS
Depreciation
Debtors – print aged debtors list
Sundry/other debtors – explain (e.g. paid creditors twice)
Prepayments – show breakdown of calculations and comparatives between previous year
Deposit A/c – show bank statement
Current A/c – Show bank reconciliation

13. How do you present the completed work
to the client- Lead Schedules continued
 LIABILITIES
Credit card – show closing statement
Creditors Control A/c – print aged creditors report
Sundry creditors – explain (e.g. debtor paid twice)
Accruals - show breakdown of calculations and comparatives between previous year
PAYE/NI- show P32 or reconciliation if in arrears
VAT – show last Vat return if matches year end or provide reconciliation
HP/Loan accounts – split if more than one and show YTD balance
Directors Loan A/c – analyse movements in the year (money invested important if
overdrawn Directors Loan a/c previous year)
Inter-co Loan a/c – provide movements in the year

14. How do you present the completed work
to the client- Analytical Profit and Loss
Pick some of the large nominal accounts and explain the reason for increase/decrease to previous
year
Examples:
 Wages
Increase in staff due to new contract
 National Insurance
Employers holiday up to £2000.00
Under 21’s NI’er Nil
 Repairs
Anything with a large value may be discussed for re-allocation to assets
Carpets got replaced throughout the offices
 Notes to the Accountant
Explain anything you have been unsure of, events that have taken place in the year that
are known to you.

15. Other Services you can provide
 Accounts Payable – reconcile statements for Financial team
 Accounts Receivable – debt collection
 Cash flow forecasts
 Utility Bill reviews