Our end of year is due and I’m unsure how to ring fence certain funds that have already been allocated to various things - i.e projects to be completed, work that has yet to invoiced for etc - how do I mark those funds as ‘accounted for’ so it we know how much of our closing balance is profit?
The accounting papers that I took as part of my professional exams a lifetime ago certainly didn’t mention hypothecation (the technical term for what you are proposing) so I doubt very much that it is covered in day-to-day accounting processes.
As you have described these funds would technically be profit as far as HMRC are concerned, if you think it should be otherwise then you should take professional advice.
Within QF you can create separate “funds” by creating dummy bank accounts but this will make reconcilliation of your bank statements a more complex and error prone process.
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Thanks, I think I’ll leave this one to the accountant!
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