Do you know what's included in Books of Account?
We had such great feedback from our last question and answer bulletin on travel expenses (http://fspbusiness.co.za/articles/accounting/the-correct-way-to-allocate-travel-expenses-when-you-charge-clients-3269.html#.UqBX9Sd_BLc) that we decided to send you another interesting question and answer.
Our reader Meisie asked, what are 'Books of Account'?
Let's look at the full question, and see what a fellow Accounting and Tax Club (http://www.accountingandtaxclub.fspbusiness.co.za/) member says.
What are 'Books of Account'?
Please would you break down 'Books of Account'?
My understanding is it is General Ledgers, Journals and Cash Books. Our auditing firm says that it also includes all supplier invoices, debtors copy tax invoices and credit notes.
Please can you clarify this for us?
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Here's what Accounting and Tax Club user Anna had to say
On one hand, the Books of Account are exactly that - the accounting records of a business. This can include (but isn't limited to):
• Cash books,
• Debtors' ledgers,
• Creditor ledgers,
• Trial balances,
• Inventory accounts,
• Fixed assets register etc.
In a programme like Pastel or QuickBooks, all of these are included as standard.
Read on to find out what else is included in Books of Account.
What else is included in Books Of Account
Books of Account includes the supporting documentation used to create the accounting records. This means all the:
Bank statements, Supplier statements,
Debtor statements etc.
Will form part of your Books of Account.
Ask your auditors to clarify exactly what they require. They'll simply look at your business accounting records and compile a list of all the supporting documents they need.
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You can also ask and answer questions on the Accounting and Tax Club
. It's a community website with guaranteed answers!