Members in Practice - Asset or Expense - MyICB Bookkeepers Forum

MyICB
Shop
0 items

First Previous - Page 1 of 1 - Next Last

Asset or Expense

David

Fellow PM.Dip
Practice Licence
424 posts

# 80001
Fri 24 Feb 2012 11:36 AM

I finally think I have my first client. We met at a networking event and I convinced him to let me start his books, just need to persuade him to let me do them regularly.

He is primarily a carpenter (sole trader), but does other jobs like tiling etc.

Now his power tools, work benches, etc would be fixed assets, and his purchases of paint, wood, etc would be raw materials or cost of sales.

My question is things like paint brushes. Would these come under the same category as the paint, ie cost of sale? These are a tool but they are so cheap these days that they could even be disposable.

Thanks in advance

Steve

115 posts

# 80002
Fri 24 Feb 2012 11:52 AM

Hi David

I have a client who runs a cafe/restaurant and her accountant has told me to put anything like cutlery, crokery etc to an expense nominal in sage as chances are they will not last much more than a year. He also told me that if she buys anything you would normally consider to be an asset (ie new vaccum a few weeks ago) and it cost less than £100 then also put that through as an expense. Therefore I set up a nominal in sage- 7801 Minor Equipment

Steve

David

Fellow PM.Dip
Practice Licence
424 posts

# 80003
Fri 24 Feb 2012 12:05 PM

Stevesaid:

“Hi David

I have a client who runs a cafe/restaurant and her accountant has told me to put anything like cutlery, crokery etc to an expense nominal in sage as chances are they will not last much more than a year. He also told me that if she buys anything you would normally consider to be an asset (ie new vaccum a few weeks ago) and it cost less than £100 then also put that through as an expense. Therefore I set up a nominal in sage- 7801 Minor Equipment

Steve”

Worth condidering. Am doing his accounts manually at the moment with the possibility of setting him up a spreadsheet/workbook. He has openly admitted that he has absolutely no clue with paperwork, so may well have to do it all. If that is going to be the case then I will consider some form of software package.

Thanks very much for your input though, helps with insight from other.