Bank rec

Bank rec

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I've got a new client who has been astonished that I expect a reconciled bank - and I want it to balance, exactly.  A few £000 here and there isn't good enough.  It would appear she has been posting the credit card transactions to the current account ie DR expense, DR VAT, CR current account as the monthly payment of £700 to the credit card is near enough what is spent each month.  No wonder the bank doesn't reconcile.

AGHHH

Its a £400k turnover, not huge.  Apparently no accountant in 26 years has been bothered if the bank doesn't balance.  Really?  They were with a national firm so I find that hard to believe.

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By johngroganjga
01st Jul 2015 09:57

I agree with you entirely.

I would take what the client says about the what has happened in the last 26 years with a pinch of salt. In most cases an accountant will just produce a bank reconciliation automatically without making a song and dance about it.  How would the client have any idea what his accountants have and have not done for the last 26 years? 

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By thomas
01st Jul 2015 10:24

Sometime they do make me doubt myself.... doesn't help that the lady who has done the book keeping is at least 20 years older than me and keeps banging on about her wealth of experience.  I've also asked for dividend vouchers.  Again, no one else has ever bothered.

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By johngroganjga
01st Jul 2015 10:39

Dividend vouchers are another matter.  Not sure why you think you need to see them. I am not sure that I would. It does not surprise me that your predecessors did not.

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By thomas
01st Jul 2015 10:56

For the directors personal

For the directors personal tax return.  I've always thought Ltd Co should have the paperwork to back up the payment, and to remind them to give due consideration to the profits before they pay out. Just me?

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By johngroganjga
01st Jul 2015 11:00

I would get the dividend information for the directors' personal tax returns from my working papers.  Much more reliable than dividend vouchers even if they exist. 

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