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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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?
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.
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.