Incorrect closing and opening stock

Incorrect closing and opening stock

Didn't find your answer?

I took over the business in 2012 before that in 2011 the accountant was replaced by his son due to illness.

I was thrust in to the position of director in the family business due to by brother falling out with my father and I really did not have adequate knowledge of what would be required of me. my father had retired due to my mother having alzheimer's but he never really ran the business because my brother did everything.

I was never asked to product a closing stock take or a list of outstanding invoices from the new accountant.

I feel like a real idiot now because my accountant has been creating numbers which are well off 2010's stock and unpaid invoices. Apparently in 2010 the accountants father produced the accounts correctly but his son is a mavrick and saw fit to change numbers to 'save us money'.

I have spoken to a few people and they have informed me that I should not have signed the accounts but I did know really understand what I was signing and I never thought that my accountant would do anything that could get me into trouble.

I know accountants try and save clients tax but his practices were not condoned, I believe that if you are making money you should pay the appropriate tax. 

Where do I stand as this has all come to fruition after HMRC wants to investigate and I had a meeting about it with the accountant.

My accountant is telling me to make sure I have stock figures showing the same figure as closing stock. I am not comfortable with this practice.

I am currently seeking legal advice as I don't know what the best avenue to take would be.

The family business has been running for 30 years and I fear that due to the new accountants lackluster attitude it wont be running for much longer.

Replies (1)

Please login or register to join the discussion.

By johngroganjga
27th Sep 2013 14:05

Sack your accountant and appoint a new one immediately.   Tell the new accountant what the old accountant has said to you.  Ask the new accountant to help you to resolve the HMRC enquiry.  With a bit of luck you should be able to get out of it with just paying the balance of the tax that you would have paid on the last accounts if they had been correctly prepared.  In future do not sign accounts until you know how the major figures included in them have been put together.  Any decent accountant will be quite happy to explain it all to you.  Whether you are asked to do so or not, always conduct a full stocktake at the company's year end.

Thanks (0)