Keeping local accounts

A cash/accounts book is essential for keeping day to day local accounts. All income and expenditure should be recorded, inclusive of VAT.

Proof of an item or income or expenditure is shown by a voucher (receipt, invoice, expense claim etc.). It is good governance to ensure all expenditure is evidenced by an invoice or expense claim and appropriately authorised before making any payment.

Paid vouchers should have an item number/cheque number that corresponds to that entered on the income and expenditure sheets. The item/cheque numbers should run sequentially, and the vouchers should be attached to the relevant quarterly return form.

Where money is received by cheque, receipts are not generally issued. It is often helpful, however, to make out a voucher recording receipt of the money, indicating the VAT amount. Where a payment is made in cash a signed official receipt stating what the payment was for and the amount is required.

Original invoices (‘bills’) should NOT be enclosed with the cheques sent in settlement of them but should have the item/cheque number entered at the top right-hand corner and should be kept with the monthly returns. A copy may be sent if necessary.

Income needs to be accurately recorded so that the correct VAT treatment can be applied by the IBMS. Where delegate income is received the exact nature of the event should be specified so that the correct VAT treatment can be applied.

Any income received will be deemed to be inclusive of VAT where applicable.