Should the accountant be categorising my invoices or should I?

[happyhippydad]

Hello all..

I have just joined this forum as I have a specific question.

This is my first year in business as a sole trader and I have chosed to use an accountant for the first year or two whilst I gain some knowledge.

They have just e-mailed me asking for a 'List of expenses by category'. I have perhaps 200 invoices for various items/tools/stationary/petrol etc etc and I was expecting the accountant to categorise and add up all the expenses.

Is this part of his job or is it mine? What is the usual practise?

Many thanks..

 

[kirby]

Do this yourself. You will save money and ensure that items are categorized in the way you want them to be.

 

[Fidget]

Besides, invoices in themselves often aren't enough for an 'outsider' to be able to categorise them for you, so do it yourself and your accountant will query any they're not sure about.

 

[Mariz]

Those expenses that you have listed is under Supplies Expense account, except for petroleum, which is a natural resource, if your business is to sell this natural resource, then it should be under a Petroleum account--something that depletes instead of depreciating(if compared to plant,property, and equipment). If it is a long term asset (i.e. Vehicle, machines for operation), then it is under an Equipment Account. Your accountant probably wanted you to list every asset that you have in your business, so he/she can classify them to their proper accounts and start accounting for its expenses.

If your accountant already have information about your business' assets, then you may just give him/her a list of your expenses.

Examples of expenses are as follows:
Rent
Utilities
Supplies
Advertising
Maintenance
Salaries
Repairs
Insurance
Miscellaneous

While, depreciation, depletion, and amortizing expenses are to be provided by your accountant for your business' tangible and intangible assets.

Also, interest expenses and other adjusting entries that would give other expenses are to be recorded by your accountant at the end of the accounting period.

Given that you have 200 invoices, I think your accountant probably wants to make sure as to where you have spent those, in order to come up with more accurate information. Moreover, since it is a new business, it was a great move for him/her to ask you those, so in the long run, as the sole owner of the business, you'd be familiar on how to give classified expense invoices to your accountant, which would give ease and organized flow for both of you and the business itself. It is, I believe, one of the great starts for a sole owner and accountant teamwork.