I have invoices and a year end
A provision against trade receivables that ties to the ledger and that an auditor will accept, plus — if you need them — the four financial statements from your own trial balance.
The year end. Usually the auditor asking how the provision was arrived at, and the honest answer being that last year's percentage was carried forward.
If you have thirty customers and a stable book, a spreadsheet is genuinely fine and this will not beat it. Come here when the auditor starts asking where the rate came from, when the book is big enough that the ageing is not obvious, or when you want the working paper written for you.
In the order you would meet them. None of them needs another to have been run first, so you can take one and leave the rest.
- 01Provide against your receivablesThe simplified approach: an ageing, a loss rate, a figure that ties.
- 02Work out the loss rateFrom your own collection history rather than a number somebody guessed.
- 03Build the statementsPosition, profit or loss, equity and cash flows from your trial balance.
Produce the number. Keep the proof.
Free to use, and nothing to install. Your file is read in this browser and never uploaded. An account is needed only to put a model change under review.