Help Required Vat Reconciliation Assistance

Help Required Vat Reconciliation Assistance

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Using Sage Line 50 2013

Hi

Just taken over from a bookkeeper who has made a real mess with the accounts on Sage Line 50 2013. I have determined a starting point in which to move forward from - beginning of financial year 01/05/13 as accounts have been filed to 30/04/13. The major issues are:

1)The past 3 quarters VAT returns are a mess - she has been accounting for Output Vat on the Cash Accounting Scheme and claiming back input VAT on the Standard Accounting Scheme. In one quarter she made manual adjustments via the sage Vat return, in the others none.

2)There have been many journals created to balance bank accounts - making trial balance figures look correct at period ends but they contain many errors - misssed payments, transfers to wrong bank accounts, suspense postings

3)At some point she decided to tick the box to change VAT scheme from Standard Accounting to Cash Accounting without reconciling or altering VAT codes. Difficult to determine the date she actually ticked the box

4)This company uses foreign currency providers to pay for Imported Goods outside EU and she has missed claiming quite alot of the Vat on Import

5)Sales Ledger is in a complete mess as they use a factoring company and she has become confused and when trying to balance Debtors just written off balances to Sales to make them correct as per the factoring company

I am quite used to sorting 'mess' out but this one has me stumped. Basically my question is does anyone out there have experience in VAT reconciliation on Sage Line 50 that could help me prepare the VAT return to 31 Jan 2014 as I dont even know at the minute which VAT scheme to reconcile to.  

Many thanx

Replies (2)

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Stepurhan
By stepurhan
14th Feb 2014 08:50

Roll back and start again

With this mess, it sounds like you are better rolling back to a point you know is right and starting again from there. There are too many different problems going on to be easily rectified, and even with that many months to re-enter, starting from scratch is likely to be quicker.

If you then produce the (correct) VAT returns from Sage and compare them to the copy submitted returns, you will end up with a net adjustment that is hopefully below the £10,000 limit for just entering on the next return.

Be sure to clear this with whoever is paying you first. Point out all the problems and make it clear that starting over will be quicker, and hence cheaper, for them.

Thanks (2)
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By fionahowells
14th Feb 2014 12:16

Accountant?

Is there an Accountant who is completing the figures to file either with Companies House or on the SA return - this is something I would expect them to sort out so be careful you aren't duplicating work!

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