hi again!!!!! All I seem to be doing is asking question after question but another one is how will they work my expenditure out as it is different every week will they average it out or will they need to see my accounts and will they need to be up-to-date?????
Hi vacs they will most likely want to see accounts for the last 6 months to include your drawings from the business and he will obviously note that they peak and trough. The OR is more than aware of how business accounting works so summary management accounts on a spreadsheet would be fine.
What about my wholesalers will I have to included them in my BR as I have been up to date paying them as they would not allow me any more stock if that was the case and i need to keep going to survive.
Hi trade debts should not be included in the SoA unless the latest date by which the invoice should be paid has expired.Until that time it's not really a debt as such, just a bill. Rather like utility bills that are not paid by DD.
Hi as a sole trader all trade debts should be included (bearing in mind my previous post regarding the difference between a debt and an invoice). If you have a credit facility with a supplier this should be included as not to do so could be considered preferential treatment.This will clearly impact on your business relationship with the supplier, are there altenative suppliers you could engage ?(but not with a credit facilities) preferably pre BR.
I am sure I can do somthing with them as I have traded with them for 24 years so they are now friends not just wholesalers.Might be a problem if they dont get paid though perhaps pay them off in fill before going BR also i am a ltd company will that make a difference and only going BR on personnal name
Hi vacs yes the limited company status makes a huge difference, good and bad. On the good side is the limited company is a seperate legal entity from you and as such nothing to do with your personal BR. Thus your trade debts, or otherwise, are unaffected. On the down side you can no longer be a director of the company, nor can you be seen to be involved in it's management.
B/R when self employed
Posted - 10 August 2008 : 14:03:31
