Help to update accounts using SAGE

Help to update accounts using SAGE

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Hi

I need help in bringing a set of accounts up to date.

I started working in a company, after taking over another bookkeeper's work.
The bookkeeper has simply disappeared and there is no way to contact him.

The accounts are a real mess.

The banks do not show the correct balance, neither do some liabilities accounts, assets accounts, debtors, creditors...
Well, nothing is up to date...

Now, the company has closed the accounts in December and is starting a new year in January (for which I have posted transactions related to the month).

I would like to know if I can just start everything fresh with new balances.

If yes, how can this be achieved? And will this give problems with HMRC?

Many Thanks

Replies (13)

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By johngroganjga
06th Feb 2014 17:53

Presumably an accountant will be preparing the 2013 accounts.  When he or she has done so ask then to give you an opening TB that ties in with the accounts.  You then post as a journal entry the differences between that and the opening balances brought forward automatically by the system. Then you will have a clean start for 2014.

It sounds as though the accountant who will be preparing the 2013 accounts is in for some fun.

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By johndon68
06th Feb 2014 17:54

Starting Afresh

To start afresh, make sure you have a backup first (as that means you have a copy of the data should it be required for HMRC) then go to File -> Maintenance -> Rebuild.  Deselect Keep Transactions and choose OK. 

This will remove all the transactions from the Audit Trail and all the accounts will have zero balances so you can start over with Opening Balances.

John

 

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By kevinread
06th Feb 2014 17:54

Please PM me

I have a particular expertise in this area. If you PM me with a contact number I can discuss the options with you. Where are you based?

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By kevinread
06th Feb 2014 17:59

these methods are too basic

Although I can see where both John's are coming from, neither of these methods will help straighten the sales & purchase ledgers, may not be best if the client is VAT registered or keep the audit trail intact.

Better would be to correct the nominal and sales & purchase ledgers properly with journals/dummy credit & debit note entries.

 

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Replying to jcace:
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By AS Accounting
06th Feb 2014 18:38

Nominal Codes

 

Thanks for your reply.

Yes, the my client is VAT registered and also they would like to keep the audit trail.

So what type/code nominal accounts could be created so they don't interfere witn Income Statement and Balance Sheet?

Also, how could I bring the bank balances to the correct figures?

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By kevinread
06th Feb 2014 19:42

I've just PM'd you with my contact details.

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By dizzypanda
07th Feb 2014 12:48

Me too!

I have just started with a company who had previously sent off their 2012/13 paperwork and Sage back up to their accountant.  The accountant has rang me and said that none of the bank reconcilliations are correct and the Sage entries do not match the bank statements - what can I do to make this correct for the accountant?  I have knowledge of Sage but I don't think I can do this........

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By kevinread
07th Feb 2014 13:02

start again

if he's not VAT registered then I would say 'start again' using opening balances from the 2011/12 accounts. If he is VAT registered then that's another matter!

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By dizzypanda
07th Feb 2014 13:14

VAT Registered

Yes they are.....

I have a horrible feeling I have walked into a real mess....

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By kevinread
07th Feb 2014 21:33

oh dear..

Hopefully the underlying source records are intact? I would suggest that the bookkeeping should be completely redone from the correct TB figures at the end of 2011/12 & then VAT returns re-run, then compared against the actual VAT returns submitted & any necessary adjustments made on the next return (assuming it's within the limits requiring separate disclosure).

Which VAT scheme do they use? Standard, Cash accounting or Flat Rate?

Does the VAT quarter date coincide with the accounts year end date?

Is the business a limited company?

Roughly how many transactions are there in the year?

The accountant, even if they're no Sage expert, should at least be able to advise you what needs to be done & provide some support.

Where are you based?

 

 

 

 

 

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Replying to Maslins:
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By dizzypanda
08th Feb 2014 16:25

Oh dear is an understatement! Lol
Thanks for your reply.

I understand all the paperwork and a backup of Sage was sent to the accountant and had a telephone call from them saying that the statements didn't match the bank reconciliations on Sage and that a lot of transactions that were on the bank statement was not on Sage so needed to be reconciled.

This is a small company that has a book warehouse and 3 shops so we claim back our VAT (obviously not our shop sales as this is taken off). It is a limited company.

There are 2 bank accounts (one for warehouse and one for shops) - can I go back and add the transactions and reconcile again - I have only ever had to reconcile once before and have only reconciled once it reached zero so I don't even know what has been done to make them balance.

My boss thinks it's me that has caused this and it's causing me a great deal of stress - the accountant is waiting for me to come up with a solution!

I am in Oxford.

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By kevinread
08th Feb 2014 16:36

In that case I would go with johngroganjga and let the accountant reconcile it and the give you a set up adjusting journals to enter in Sage to bring in in line with the 2013 accounts. I would ask them for a full detailed list of their adjustments made to the bank accounts so that you can flag these off against the errors on the other side of the account that they will have corrected leaving a corrected bank rec at the end of 2013. Then its the current accounts year's bookkeeping to fathom out. You'll definately need an accountants help with this one.

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By ejanejones
08th Feb 2014 19:03

From experience do this - there is no easy way

I would suggest the following in this order:-

Journal adjustments to get the Sage Balance Sheet to agree with the Balance Sheet of the last set of accounts to be produced by the AccountantsReconcile the bank from the beginning of the new year - if the closing balance on the last set of accounts does not agree with your opening balance on the bank statement you will have to find what the difference is i.e u/p cheques.If it is in that much of a mess do  a day by day bank reconciliation - making the neseccary adjustments as you go, that way you will find all the errors. Your bank account is your ultimate control.Ask the accoutant for a breakdown of any balance sheet adjustments/ accruals made at the year end that need to be reversed  i.e Debtors (payments made in advance), Creditors (usually Accoutants figure that they accrue for)Once you are up to date with your bank reconciliation check your nominal ledgers for wrong postings and journal any adjustments that need to be made.Run a VAT report and check invoices against the report to establish that the figures are correctRun a trial balance and see if anything looks out of place - investigate if something does not look right, this comes with experience.If you manage to get through the above list you should be on a firm footing going forward.Have bags of patience to complete the job - great satisfaction when you have done it

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