Hello
My client fits windows and doors as part of his business.
I have been tagging his purchases of the doors and windows or glass etc to General Purchases as it comes under Cost of Sales.
I’m about to do his Self Assessment and wanted to check this is correct.
Also is it correct for the General Sales not to show in the balance sheet?
I have used the Year End Tool although there is no analysis required just the simple SA figures to be input.
Thanks
Hi @Sharonmw1
For the most part, yes General Purchases is sufficient. If you’re using a large amount of stock, it may be worth moving the stock balances to Opening / Closing stock at year end.
General sales itself isn’t an asset nor liability so that’s correct for it not to show on the balance sheet. What you will see however, is the profit/loss for the current year, and any retained profits from previous years.
[Edit]
You may find these posts useful regarding the opening and closing stock balances:
Purchases for resale are cost of sale items, dont forget to account for closing stock to get correct cost of sales
My client doesn’t keep stock as he orders it for the job and it goes straight to the job.
I do however have the issue that he occasionally uses items he has kept and isn’t really accounting for that.
I can only advise and nobody listens…
Clients tend to be more complex than you would think. Sole Traders are supposed to be the easier option but there are so many different kinds 