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This article provides 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).

Table of contents

Usage guidance

  • To get started, be sure to select the appropriate workflow. There's a unique workflow for Sole traders and Partnerships available in the Templates >>Workflows section at the firm level:
  • There are a significant range of partnerships with varied standards of bookkeeping. We have therefore produced procedures for different types of partnerships/sole traders depending upon their bookkeeping set up:

Structured bookkeeping 

  • Separate TB codes for each movement type and each partner (e.g. opening balance, capital introduced, drawings for each partner).
  • The “mapped” option can be selected in the working paper to bring the balances through without the need for further analysis. 

Less structured bookkeeping

  • One TB code per partner with all movements (opening balance, capital, drawings) mixed together.
  • Use our Silverfin templates to analyse and split balances into the right categories.

1. Partners (Working Papers)

If the unincorporated entity is a partnership, then details of the partnership need to be added to the ‘Partners’ template in the working papers workflow:

  • The key details of the partners should be added including their Name, Salary (Guaranteed profit share), Interest on capital, Profit split details and dates appointed and resigned. These details feed the rest of the Accounts production and working papers.
  • You will notice that there is a drop down selection to determine how the profit/loss is allocated for each partner. There are various options available being:
  • % - Enter a percentage split per partner
  • Equally split - Split equally between all partners
  • Value - Enter specific amounts per partner
  • Mapped - Pulls in values from the posted TB codes.
  • Varying profit split - Handles changes in profit splits during the period. (e.g. new percentages mid period/new partners appointed during the period).

2. Current & capital account allocation (Working Papers)

This account template automatically appears as the default template when clicking into an applicable current/capital account balance from the working papers screen, based on our standard chart of accounts for new client files created (otherwise it can be selected from ‘edit’ on the accounts page). 

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

  1. Enter ledger data: click on Actions> > Import Reconciliation data, match description and values, click replace data. Or, enter data manually.
  2. Choose allocation: Allocate the full TB code to a specific partner (from the Partners template). Or analyse further and split items between partners.
  3. If splitting: select the partner and category for each line (as shown below). Default categories come from the chart of accounts but can be changed as required.
  4. 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.
Complete the Partners template first so partner details are available in the current & capital account template.

3. Partners/Sole trader current/capital accounts (Working Papers)

After allocations, use the summary templates:

  • Partnerships - Partner Current Accounts and Partner Capital Accounts
  • Sole Traders - Sole Trader Current Account and Sole Trader Capital Account

Below, we have included a screenshot of the Partner current account summary. The other templates listed above function in the same way.

What Does It Do: This template summarises all of the analysis you have done and presents the overview of the current/capital accounts to give you the whole breakdown of the balance and the movements in the period.

Two workflow options:

  • Accounts Analysis - Pull values from your previously completed allocation templates
  • Mapped - Pull values directly from TB codes (when bookkeeping is structured).

Here the summary of all the accounts can be reviewed before the data is passed to the annual accounts. We show you the templates in which the values are pulled from so you can easily see where to update if your template doesn’t reconcile.

The transfer to/from capital/current should match the respective amounts on the capital and current account summaries. If they do not match, we include a reconciliation icon (red triangle) will appear.

4. Partner current/capital account notes (Accounts Production)

The data from the Working Papers then automatically flows through to the Accounts Production workflow. Balances are shown in the notes to the annual accounts (capital and current accounts) and reconcile with the balance sheet. If values don’t agree, a reconciliation icon ( ?red triangle) will appear.

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:

A 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.

Important Note:

  • Silverfin always allocates profit/loss and drawings to the current account.
  • This can not be changed.
  • If you prefer them in the capital account, our suggestion is to transfer the net balance to the capital account.

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 Partners template in working papers:

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 to them please speak to your Silverfin admin or your Customer Success Manager who can help you add these.

Helpful accounts

The below are useful account codes to be used for sole traders and partnerships. 

  • Sole traders use the first code in each row (acts as Partner 1).
  • Partnerships can use up to 15 partners (below shows first 4 for example).

Current Accounts

Opening balance: 310950, 310960, 310970, 310971…

Funds introduced: 320060, 320061, 320062, 302063…

Share of profit/loss: 320200, 320201, 320202, 320203…

Drawings: 320300, 320301, 320302, 320303…

Transfer to/from capital account: 320550, 320551, 320552, 320553…

Transfer to/from land and property capital account: 320600, 320601, 320602, 320603…

Transfer to/from additional capital account: 320700, 320701, 320702, 320703…

Transfer between partners: 320800, 320801, 320802, 320803…

Capital Accounts

Opening balance: 310910, 310920, 310930, 310931…

Capital introduced: 320000, 320001, 320002, 320003…

Repayment of capital: 320400, 320401, 320402, 320403…

Transfer of capital: 320500, 320501, 320502, 320503…

Transfer between partners: 320850, 320851, 320852, 320853…

Land and Property Capital Accounts

Opening balance: 322000, 322001, 322002, 322003…

Capital introduced: 322100, 322101, 322102, 322103…

Capital revaluation: 322200, 322201, 322202, 322203…

Capital repayment: 322300, 322301, 322302, 322303…

Transfer of capital: 320500, 320501, 320502, 320503…

Additional Capital Accounts

Opening balance: 323000, 323001, 323002, 323003…

Capital introduced: 323100, 323101, 323102, 323103…

Capital repayment: 323300, 323301, 323302, 323303…

Transfer of capital: 323500, 323501, 323502, 323503…