What info do I need to include in accounts?
My bf and I started up in business last year. The people we rent our sites from want to see our accounts. I'm a whiz with Excel but I'm not sure what information they will expect to see. We are supposed to give our accountants the info regularly but haven't been sending them it. Can anyone help? It's a catering business and we rent sites from the people that generate the business for us. We took the contract on on the basis that they would review our accounts...and then our rent... after six months. I have all the information I think I'll need I just don't know what they're expecting!
United Kingdom - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
When you say 'sites' what are you referring to? Web sites or physical locations... For websites, I'd tell them its none of their business. I've never had to do that in 20 years of business. Send a message to my yahoo account via this if you need any more info... (One of my businesses is web hosting and I can't for the life of me think why they would want to see your business accounts) Chris
Answer 2 :
They'll probably want to see your account ledgers. Balance sheet, and income statement if you have them. Essentially they want proof of your solvency to assure them you'll be able to make the rental payments. (They may ask to see a bank statement, to prove that your deposits match your reported income.) Ask them what they specifically need to know, it'll help you get them the information they need without all the guessing.
Answer 3 :
They probably want to see a profit and loss account and a balance sheet. I can't see what information they could get just from looking at your cash book, unless they want to ensure you have a steady income. I would talk to your accountant for some advice, thats what you pay them for!!
Answer 4 :
Produce the true accounts showing profit and loss. Presumably you agreed to this in the rental contract and I expect that if you are doing well they will want to increase the rent? Or is the rent in some way based on your turnover or profit?
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