Company Accounting And Purchase Receipts...

[Marvo]

A query about purchase receipts...

My accountant says that in order to put a petty cash (or any) receipt through the business, the receipt must bear my company name i.e. "receipt to:.."

How does this work when the shop the company is buying from is only equipped to give me a normal till receipt?

Back in my home country, a receipt only had to bear the name of the supplier.

Any advice welcome, thanks.

[Cloggie]

It must be the FULL EXACT address as mentioned on your company registration papers!

When I purchase anything outside and pay in cash I carry a paper with me with 4 different address where companies are registered. Every purchase will have his own invoice and even a small mistake like 35 instead of 37 and invoice is rejected by accounting....

[quadman]

It must be the FULL EXACT address as mentioned on your company registration papers!

When I purchase anything outside and pay in cash I carry a paper with me with 4 different address where companies are registered. Every purchase will have his own invoice and even a small mistake like 35 instead of 37 and invoice is rejected by accounting....

Do you mean you write your own receipts while at the vendor?

How does one make a purchase for the company with cash with a vendor issuing only cash register receipts?

Employee expenses? They can't be reimbursed to an employee for things such as gas, taxis, fast food stop (McDonald's), etc?

[p_brownstone]

I believe your Accountant is referring to Company expenses - and Receipts for those expenses - where your Company is claiming V.A.T. refunds, in such cases the Receipt must bear your full Company Name and Address plus your V.A.T. Registration number.

Patrick

[Marvo]

I believe your Accountant is referring to Company expenses - and Receipts for those expenses - where your Company is claiming V.A.T. refunds, in such cases the Receipt must bear your full Company Name and Address plus your V.A.T. Registration number.

Patrick

Good point Patrick. In my case we are not VAT registered and not reclaiming the VAT. So the staff buy lunch at McDonalds while out on a job, - what's the minimum receipt spec. demanded by the "inland revenue"?

[fletchsmile]

This comes up a lot in Thailand, and Thai tax authorities are particularly strict on the minutest details. Knowing this most accountants like your pass on this strict requirement, and they are often told from people higher up in companies not to accept receipts that don't comply.

Without the correct company details, it can't be used as a deductible expense of your company for tax purposes (VAT and corporate income tax). The company can re-imburse you for the expense though. That depends on the company policy. Indeed I've submitted claims in Thailand to companies with such receipts, and also even submitted claims to be re-imbursed with no receipt such as taxis. What it means is the company won't be able to deduct this as an expense in calculating their taxable income.

Put another way:

Revenue (30) - deductible expense (20) = taxable income (10)

If you spent 20, the company can re-imburse you, but intsead of paying various taxes based on a net of 10 (if you have the correct receipt), they suffer taxes on the gross of 30. Obviously this costs the companies money, so companies usually set strict rules for their accountants to enforce for them. It also puts the onus back on employees not to be lazy and get a proper receipt otherwise they won't re-imburse you. Now you may be the owner of the company, but you're accountant will be practising what they learnt elsewhere. In addition not having correct receipts makes your accountants life more difficult, as they have to start separating what is deductible and what not, so it creates more admin. Could also be if you have a junior person they don't know how to deal with it, so insist on the rules!

Edited October 6, 2012 by fletchsmile

[Cloggie]

It must be the FULL EXACT address as mentioned on your company registration papers!

When I purchase anything outside and pay in cash I carry a paper with me with 4 different address where companies are registered. Every purchase will have his own invoice and even a small mistake like 35 instead of 37 and invoice is rejected by accounting....

Do you mean you write your own receipts while at the vendor?

How does one make a purchase for the company with cash with a vendor issuing only cash register receipts?

Employee expenses? They can't be reimbursed to an employee for things such as gas, taxis, fast food stop (McDonald's), etc?

First I want a 'real invoice' - the Chinese shop at the corner only has a small receipt, accounting will accept that just to reimburse me, taxi don't have anything then it must be reasonable. A taxi from Sukhumvit to airport is about TB 200 - we all know that - so they will accept TB 200 and not TB 450. In general without any 'bills' NO reimbursement.

Edited October 8, 2012 by Cloggie