Which way is correct?

[aly]

i've done my accounts now for 2 years now, and it's the 1st for a friend...basically looking at her accounts she is taking up every single line in her book which i thought was a bit of waste ...

If you look at the ncma book it states on left the 'expense item' and the following columns then state, gas, elec, travel etc.....and i usually state the amount all on the same line but within the coumn....my friend states them un separate lines, just like the example and said our inspector told her to do it that way as if the tax man were to look at it they wouldnt know what was what without looking at receipts {which is the point eh!!}

so am i wrong, and should i enter it on every line or am i fine in what I do?

My argument was what if I wasn;t using NCMA books {which I wont be next year} as i can enter my accounts anyway i want etc..?

help

[MrAnchovy]

Do it any way you like as long as:

It is easy to see what numbers add up to make the total expenses
It is easy to find the relevant receipt for each item


For income, it is important again to see what numbers add up to make the total income, and to be able to relate each number to hours/days/children/extras as appropriate but also to be able to match each credit entry in your bank statements to the appropriate entries in your income.

[Chatterbox Childcare]

Aly does it matter whether every line is used or not in the NCMA book.

As long as the total at the bottom of the page is the same I don't think it does.

It is the end result that counts, not the way it is recorded (as long as it is legible and makes sense of course)

I can't get but thinking that I have misread the content of this somewhere

[Louise0208]

i use up all or most lines aswell :blush:

you could see it as you only use 1 week per page then the black spaces are a waste if unused.

i find it easier to look on back when i have 1 item per line & the line clearly states what the item is (instead of just 'stationary or toiletries etc)

but thats just me :o

[aly]

Aly does it matter whether every line is used or not in the NCMA book.

As long as the total at the bottom of the page is the same I don't think it does.

It is the end result that counts, not the way it is recorded (as long as it is legible and makes sense of course)

I can't get but thinking that I have misread the content of this somewhere
Debbie, to me no it doesn't matter as I did whatever fitted with me but friend said our inspector says differently.....i shall see when she turns up in a couple of months as it looks like i have another inspection due:rolleyes::rolleyes:

[Louise0208]

Inspectors look at accounts? Yikes!!! :eek:

[miffy]

Debbie, to me no it doesn't matter as I did whatever fitted with me but friend said our inspector says differently.....i shall see when she turns up in a couple of months as it looks like i have another inspection due:rolleyes::rolleyes:

Do inspectors in Wales have the right to look at your accounts then? :eek:

Miffy xx

[aly]

Do inspectors in Wales have the right to look at your accounts then? :eek:

Miffy xx
Yeah they do if they ask, she has never asked to see mine {yet} just as well as mine are not up to date yet lol and never was last year :panic:

[Chatterbox Childcare]

I cannot see why Ofsted would have any say in how our books are presented.

In England they have no right to see them and I wouldn't show them even if I was in Wales. Would they show me their pay slips? I think not.:angry:

[miss mopple]

I wouldn't be showing my accounts to anyone other than a tax inspector. No one else has the right I wouldn't have thought :panic:

[TheBTeam]

I write some things on a new line, but some things like nappies/utilities etc on the same line different columns, it is easy to see which is which so i see it makes no sense to waste a line.

I would say that I can not directly relate all income received to entries on my bank statement simply because i dont always bank what i receive and often spend it before it ever makes the bank!

I do however assume all that is paid into my bank is wages unless it is marked as such ie presents from grandparents for kids or money for us, if it is anything other than income to the business then i make sure it is clearly marked on any paying in slips.

[MrAnchovy]

I would say that I can not directly relate all income received to entries on my bank statement simply because i dont always bank what i receive and often spend it before it ever makes the bank!

That's OK, it is the other way round that is important - you must be able to relate all the entries on your bank statement to income received (or be able to provide evidence, if necessary, what it is actually for).

And no, Ofsted inspectors cannot tell you how to do your accounts and are not trained or qualified to do so. However they are probably entitled to look at your accounts to check that you are not receiving income for more children than you say you are looking after.

Ofsted's powers are granted by Section 82 of the Childcare Act 2006:

The Chief Inspector may at any time require any person registered under this Part to provide him with any information connected with the person's activities as an early years provider or later years provider which the Chief Inspector considers it necessary to have for the purposes of his functions under this Part.

[Chatterbox Childcare]

That's OK, it is the other way round that is important - you must be able to relate all the entries on your bank statement to income received (or be able to provide evidence, if necessary, what it is actually for).

And no, Ofsted inspectors cannot tell you how to do your accounts and are not trained or qualified to do so. However they are probably entitled to look at your accounts to check that you are not receiving income for more children than you say you are looking after.

Ofsted's powers are granted by Section 82 of the Childcare Act 2006:

Whilst I respect your position as an accountant you are wrong with relationship to Ofsteds entitlements to look at our books. They have attendance registers to ascertain who we have and how many children.

It amazes me that anyone would even allow them too - after all would you let me look at your wages or P60?

[tulip0803]

I cannot see why Ofsted would have any say in how our books are presented.

In England they have no right to see them and I wouldn't show them even if I was in Wales. Would they show me their pay slips? I think not.:angry:

Unfortunately it is in the National Minimum Standards for Wales that they can view all financial matters should they wish to do so. They have never asked me or anyone I know but if they do we have to show or we are in breach of our registration as we have to abide by the NMS.

[Chatterbox Childcare]

Unfortunately it is in the National Minimum Standards for Wales that they can view all financial matters should they wish to do so. They have never asked me or anyone I know but if they do we have to show or we are in breach of our registration as we have to abide by the NMS.

I think that is awful and would ask why someone would want to see them, even if it is a standard.

[MrAnchovy]

Yes, the National Minimum Standards for Wales are much more prescriptive than those for England and contain the following provision:

Standard 17: Financial procedures
Outcome:
Children and their parents are safeguarded by the registered person operating sound financial procedures.
The registered person is responsible for ensuring that:
17.1 Effective financial procedures are operated.
17.2 There is adequate public liability insurance, and valid insurance for vehicles if used.
17.3 If requested by CSSIW, records of all financial transactions relating to the provision of care to relevant children must be made available.


However as I mentioned below, Ofsted in England are probably given equivalent powers by the wide-ranging drafting of the 2006 Act.