But such accounts always have a habit of degenerating into a sort of no-go-area when it comes to control. No one bothers to allocate the cash against the sale and reconcile it. It soon becomes a dumping ground for anything strange or unexplainable that arises in the debtors ledger and therefore an invitation for fraud and theft.
What you have high-lighted is a controls issue that has little if anything to do with the existence of a particular debtors ledger account. I've always believed that perception is half the problem with controls, so something called "Sundry", Miscellaneous", is likely to attract unhealthy attention or haphazard control, so maybe an official title like the "Debtors Ledger Cash Sales Control Account" would be a move in the right direction.... But such accounts always have a habit of degenerating into a sort of no-go-area when it comes to control. No one bothers to allocate the cash against the sale and reconcile it. It soon becomes a dumping ground for anything strange or unexplainable that arises in the debtors ledger and therefore an invitation for fraud and theft. Just be careful how you implement it thats all...
What you have high-lighted is a controls issue that has little if anything to do with the existence of a particular debtors ledger account. I've always believed that perception is half the problem with controls, so something called "Sundry", Miscellaneous", is likely to attract unhealthy attention or haphazard control, so maybe an official title like the "Debtors Ledger Cash Sales Control Account" would be a move in the right direction.
Thanks very much for the replies. From the above info, the easiest thing seems to be to set up a specific debtors account and to put all cash invoices and payments through it, with a reference to date or something similar.
If we ever did have a revenue audit, could they ask us to provide names linked to the transactions?
It looks like you could have your hands full there with the revenue "widebody".
Given the large sums of money involved, you're not selling sweets, despite your endearing nic.
The implication being that something isn't quite right when someone routinely deals in untraceable amounts of cash in the €1,000+ range.
There could possibly be a criminal implication for you if you suspected these sums were a means of evading tax or the proceeds of crime, didn't report them and this was found to be true.
Its important to be able to trace sources of income back to source and I would be very wary of facilitating cash laundering by someone who is either:
(i) looking to evade tax illegally on undeclared revenue from his cash-only business - a bar or nite club for example.
(ii) looking to launder cash based illegal income - smuggling drink, drugs, etc.
Looking at all the cars whizzing around these days you'd hardly think that Ireland is in a recession at all.
One comment I overheard suggests there is a massive black merket out there at the moment.
I'd certainly get any large amounts of "cash" sniffed by a police dog these days.
Especially if there are any yacht club connections.
The kind that have "floating assets".
If you know what I mean.
<ducks as hordes of angry commodores of the fleet rise up in denial...>
To sum up, I'd approach the revenue on a no-name basis and ask their advice.
After all, they're the ones who call shots, right?
Talk to them, they don't bite.
After that, its the Special Crimes Unit and the Customs, I'm afraid.
HTH
ONQ.
This does happen al lot. Some staff are attracted to the "sundry" account like moths to a flame, if anything comes in that's out of the ordinary, they dump it there hoping never to be found again.
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