Question

When considering business and personal objectives, what should clients’ files be analysed for? 30–50 words

Answer 1

When considering  business and personal objectives, clients' files should be analysed considering following:

• Whether any asset purchased, is to be used for business or for personal use. If it is shown to be used in business, analyse it's actual requirement in the business. Eg: If Client shows Air conditioner as Business asset purchased and the delivery and installation location in Invoice is client's Home, then it is for personal use.
• While analysing any expense, it is to be seen whether that expense is useful for business or not. If any expense made doesn't effect the business, it will be for personal objective. Eg: Repairs made to client's personal car doesn't effect business. So that is for personal objective.
• While analysing incomes, consider the difference between receipts for business use and personal receipts.Any receipts from client's customers will be for business objective, while any receipts from client himself or his relatives will either be loan for business or for personal objective.
• While analysing Liabilities, payables for business use like suppliers or office rent payable are for business objective, while payables for client's personal expenses like House Rent Payable are for personal objective.