Sorry for the lengthy post, I'm new to bookkeeping!
I have recently started work as an administrator for a private care company. Part of my role is posting invoices for suppliers and clients, posting payments and completing bank reconciliations on Sage 50. I am new to it and hoping that the company puts me on a bookkeeping course to assist my understanding.
I have been with my partner a couple of a years. He was in the process of getting divorced when we met, they've been divorced a a little over a year now and his ex wife just continued doing the accounts as she had done while they were married. His ex wife got wind that I have Sage experience (obviously limited) and has decided that she no longer wants to do his accounts. She gave us the Sage package. We put it on his laptop and Ive restored the back up. The accounts are completed to the end of March 2018. My partner has never used Sage and his only part in his bookkeeping was providing his Ex with receipts and bank statements, she just got on doing the rest, and he paid his tax bill when it came in. They had rental properties she sorted the bookkeeping for too. She didnt want him being involved in it and it was like that the last 13 or so years.
My partner is a plumber and a sole trader. He isnt VAT registered. He only has his business account that he uses, so I thought it should be pretty straight forward.
His accounts look nothing like what I am used to working with. There are a number of accounts set up. His business account and a number of credit card accounts, which are his but not for business use, and they are historic paid off with a 0% balance transfer card (not on sage) and then that was paid off with personal funds from a house sale in the divorce settlement. I dont know where to start getting those credit card accounts to zero.
There is a supplier account set up as "personal drawings" under a N/C in the 3000 range. Any payments made for personal things like groceries, meals out, go in as a payment and then an invoice raised to match against the payments.
For his customers (as they dont always tend to be regularly invoiced week in week out) its just a one of for a bathroom installation, there is a customer account set up as the tax year for example "2017/18" and then invoices posted with the invoice number as the "ref" and the customers name as the "description", incoming payments are then posted to the customer account and then matched against the relevant invoice.
That all seems to be a pretty simple way of continuing things.
However there are certain direct debits on the account that have posted differently to how I would have.
For instance, his Gym membership. I would have posted this direct debit as a bank payment to his personal drawings but it has been posted in a tiling suppliers and an invoice raised against it. He told me instantly what this direct debit was on his account so it doesnt seem like he has meant for this to happen. He has cancelled this direct debit now, but it will need to be posted for the Tax Year 2019/20. Do I post it the way I think it should be posted? I dont feel at all comfortable posting a gym membership to a tiling suppliers.
There are loads of other supplier accounts that dont make sense to me, like "Shell garage", "Asda" "Zizi's". Surely family meals out can't really be put through as a business expense? I understand he can claim back for his fuel in his Van and for his monthly Van repayment, but I would have put the fuel through as a bank payment from the business account under N/C 7304 and then matched it with a receipt? We reference number all our receipts where I work and they get entered onto a spreadsheet and filed, so they can be easily traced. If he gets fuel at Morrisons for example, it doesnt make sense to post it to the supplier "Shell Garage" to me as it doesnt match the receipt. It makes no sense to me to set that up as an account any way...
Any help would be greatly appreciated. I hope I've made sense and used the correct language to describe what I mean!