Q&A: Getting the most out of your end-of-year accounts (1 CPD hour)
Accountant Jeanette Brown helps to demystify your practice’s annual financial reports.
This module offers advice on reading end of year accounts for your practice, including
- The importance of your year-end date
- The difference between a capital account and a current account
- How to manage seniority clawbacks when a partner retires.
After reading these articles you will be asked to record your learning points and some action points to earn a suggested 1 CPD credit. Below are some suggested questions to reflect on as you work through the module:
- When is your account year end? Might there be any advantages in moving to a different date?
- Are MDO costs, professional body subscriptions, course fees and so on paid for individually? Should you consider paying these expenses through the practice so they appear in the practice accounts?
- Have you compared your practice payments with the national average? Do you know where to access such information?
- Are you clear what comprises your capital accounts – and are you satisfied with how these are equalised?
- Do you have one partner who analyses each year’s practice accounts in detail? Should you consider an annual meeting in person with your accountant, if you don’t have one already, to iron out any queries?