FAQs: Bookkeeping Approach & Reconciliation
Common questions about Outmin's bookkeeping methods and reconciliation process
Is bookkeeping done on a cash or accruals basis?
We operate on an accruals basis. The bank feed helps us flag missing documents or reconciliation issues, but all financials (e.g. trial balance, VAT workings) are accruals-based.
How do you handle outstanding cheques or bank transfers at period-end?
We do not include these unless specifically requested (e.g. if material or recurring). They are included in year-end working papers.
Do you provide any proof that the bank balance agrees with the physical bank statement?
We receive the correct balance each day directly from the bank. While this will soon be displayed in the system for both you and the client, for now we can confirm balances on request (e.g. by comparing with client statements).
How are outstanding debtor receipts treated for VAT purposes?
If accruals basis, the sale is already accounted for when the invoice is issued. If on cash basis, the receipt would not be included until received. We follow your guidance where needed.