Industry sector:

Public house: Cash from debtors

Most pubs don't have debtors - their customers pay for their drinks and/or food at the time when they consume them. However, you might have a few account customers who you invoice at regular intervals, for example a wedding planning business or other organisation that hires a function room on a regular basis. After they have been sent an invoice but before they pay, they are your debtors. When they pay you, the payment is referred to as 'Cash from debtors'.

Payment terms

You will have agreed with any account customers your payment terms, for example, 30 days credit. You might decide to offer a small discount for early payment.

Consider what steps you will take to recover any overdue amounts and whether you will charge interest on these.

Make an estimate of the income you might receive from account customers and enter that amount in the month in which the money will be received.

Alcohol wholesaler registration scheme (AWRS)

If you do sell any alcoholic drinks to other businesses on anything other than an 'incidental' basis (sales that you don't solicit, or that you are not aware are trade sales) you will need to register with HMRC as an alcohol wholesaler. HMRC will make checks to ensure that you're a 'fit and proper' person to operate as an alcohol wholesaler - for example that you have never been involved in illicit trading of smuggled goods. You'll need to apply online for registration at least 45 days before you start trading. You can find out more on the website.