We've made some exciting improvements to our Unincorporated Accounts Production package for Sole-Trader and Partnership accounts recently. You can expect similar, easy-to-use navigation with new or improved working papers linked to the Accounts Production module, for that connected accounting feeling.
This guide will take you through the changes and provide guidance for Unincorporated specific templates across working papers and Accounts Production.

Not set up for Accounts Production or the Unincorporated package?
If you haven't already, your firm will need to activate the Unincorporated package from the Marketplace, set up the workflow and the client type. For any questions please contact your Customer Success Manager (CSM).

What has changed?

Working papers

  • Account templates
    • New template for analysing capital/current accounts where accounting data is unstructured
  • Reconciliations
    • Improved template for capturing partners details
    • Updated current account working paper for partnerships and sole-traders
    • Updated capital account working paper for partnerships and sole-traders
    • Mapped workflow option for files with structured bookkeeping
    • Profit allocation can be done via journals or via template

Accounts Production

  • New P&L format with more detail and supporting additional note
  • New profit allocation note that is linked to the profit allocation in the underlying working paper
  • Updated current account note that is linked to the underlying working paper
  • Updated capital account note that is linked to the underlying working paper

To get started, be sure to select the appropriate workflow. There's a unique workflow for Sole traders and Partnerships.

This document serves as a user guide for the updates we have made to our unincorporated package. These updates have been centred around connecting the unincorporated working papers with the accounts production to ensure that the data is consistent between both workflows.

1 Partnership details

If the unincorporated entity is a partnership then details of the partnership need to be added to the Partnership template:

Screenshot 2021-08-03 at 16.38.42.pngThe key details of the partners should be added including their Name, Salary (Guaranteed profit share), Profit split details and dates appointed and resigned. These details feed the rest of the Accounts production and working papers.

There are a significant range of partnerships with varied standard of bookkeeping. We have therefore produced procedures for different type of partnerships/sole traders depending upon their bookkeeping set up:

  1. Structured bookkeeping - The entries have been split out such that each movement type has its own TB code for each partner.
  2. Less structured requiring additional analysis. e.g. 1 account per partner with all movements

For clients with type 1 structured booking step 2 can be skipped and “mapped” selected in the working paper to bring the balances through without further work.

For clients with type 2, where further analysis is needed, we have built a new account template to allow this process to take place in Silverfin.

2 Current/capital account allocation

We have a new account template called ‘current/capital account allocation’. This will appear as the default onto the applicable current/capital accounts from our standard chart of accounts for new client files created (otherwise it can be selected from ‘edit’ on the accounts page). As a user you will not have to select this.

This new account template helps categorise the movements in the year and assign them to partners.

Firstly ledger data can be imported using ACTIONS > IMPORT RECONCILIATION DATA and then match Description and Values and click replace data. This will import the ledger data into the template, alternatively data can be manually input.

Screenshot 2021-06-30 at 13.09.44.pngFrom here each line can be allocated to a partner and category which will feed into the working paper and accounts production. The category will default based on the account type from our standard chart of accounts. There are also options to allocate all transactions to a single partner if no adjustments are needed. For sole traders there is no need to allocate to an individual, the allocation only needs to be on a total basis to categorise the entries.

3 Working paper summary

All the relevant accounts are then summarised in the ‘Partners current accounts, Partner capital accounts, Sole trader current accounts, and Sole trader capital accounts ’ reconciliations. Below we have included a screenshot of the Partner current account summary. The Partner capital accounts, Sole trader current accounts, and Sole trader capital accounts function the same way:

Screenshot 2021-06-30 at 13.11.45.png

Here the summary of all the accounts can be reviewed before the data is passed to the annual accounts. The transfer to/from capita/current should match the respective amounts on the capita and current account summaries. If they do not match, we include a reconciliation tag (red triangle) to alert the user that the values do not agree.

4 Accounts production - current/capital account

The data is then displayed as a note(s) to the respective annual accounts (capital and current). These values will reconcile with the values on the Balance sheet. If there is a difference we include a reconciliation tag (red triangle) to alert the user that the values do not agree. Below we have included a screenshot of the Partner current account note. The Partner capital account note, Sole trader current account note, and Sole trader capital account note function in the same way:

Screenshot 2021-06-07 at 15.25.24.pngA table for the comparative year can be added using the actions>copy data button which will bring forward the previous years comparative figures below the current year table.

5 Accounts production - Allocation of profit

The allocation of profit is also displayed as a note to the account and the information is populated based on the information entered in the “Partnership Details” workingpaper:

Screenshot 2021-06-07 at 15.33.26.png

6 Additional notes

Some partnerships keep some of their assets in a separate capital account to their capital funds. For these businesses there is a separate “Land and property capital” account as well as an “additional capital” account. These function in the same way as the normal capital account. If you require these but do not have access them please speak to your Silverfin admin or your Customer success manager who can help you add these.