I am having an absolute brain blank.
It is my first experience of cash accounting for my first self employed client. We have an opening cash balance at the start of the year which differs from the actual cash balance. I believe this is unreconciled items. Accounting Cash and Actual Cash are both Dr entries.
Do I need to ask the previous accountant what this represents, or should I be able to work this out ? I have the appropriate bank statement, and it is not obvious.
Any guidance would be appreciated.
Thanks
Replies (2)
Please login or register to join the discussion.
I presume you are talking about the bank balance
If it is not obvious from the opening bank statement then you will need a copy of the bank reconciliation as at the end of the previous accounting year. Your client should have one. Otherwise you will need to ask the previous accountant for a copy.