I have a client who sells vaping liquids and equipment. The accounts are a mess. There are no till rolls from the shop, simply a spreadsheet of cash and card receipts that does not agree to the bank receipts or the credit card reports.
Client says shop staff were rubbish and made mistakes with the spreadsheet. Thankfully its below the VAT threshold.
I think the only answer is to record sales based on receipts in the bank. I dont feel entirely comfortable with this as if the shop staff were so incompetent, then its probable that cash was taken by staff and/or used for cash purchases from suppliers.
We are msising lots of purchase invoices as well - clients computer died during the year with no back up. We are in the process of requesting copy invoices fron suppliers where available but lots are not available so again, Im left with using the bank statements.
What would you do if faced with such rubbish accounts? I have them now on Xero so going forward should be less of an issue. What would HMRC think if they opened an enquiry?