Stock funding (next gear etc) + year end accounts

[Rory RSC 596]

Can anyone assist with a query I have regarding end of year accounts and stock funding. Not sure the correct way in which this should be shown and how to demonstrate this on the accounts correctly. 

Appreciate any advice. 

[umesh 336]

Best would be speak to your accountants would it not?  classed as a loan outstanding ( Creditors)  

[Rory RSC 596]

Best would be speak to your accountants would it not?  classed as a loan outstanding ( Creditors)  

You would think it would be a good place to start but the conversation resulted in more questions than answers. 

They have suggested not showing the stock funding loan anywhere in the accounts at all. To my mind this just simply cannot be right. For each vehicle purchased on stock funding we are making still prepping the car and each funded vehicle will still have prep money tied up in it which we do account for.

 

[umesh 336]

WHAT !! 'Stock funding' is a loan ! Think your accountant needs to talk to an accountant !  

[Beautiful South Martin 24]

I use Next Gear for some stocking. I bring the car into stock as I would a normal car but mark it in my stock book as NG rather than PX, direct purchase etc. At the end of each month I do a stock list and highlight it in red the NG vehicles so my accountant can see which cars are on the plan. I have 3 columns in my cash book to split their transactions.

1. Next Gear Charges/interest 2. Auctions fees repaid 3. Next Gear Capital repaid.

I've been using them since Feb this year and my bank charges have increased as they treat every line of the invoice as an individual direct debit, which as you know the banks love charging for!

I'm not a qualified accountant but I did a book keeping course many years ago and I do all my own books/VAT returns etc so all my accountant does is pull them all together for my annual accountants.

Give me a call I you want to discuss in more depth.

Chris

[Rory RSC 596]

That is my view on it Umesh - The figures they have come back with look completely skewed because of this. 

Thanks Martin - That is actually the format we do things in. Going to have a conversation with them on Monday and get this sorted.