- edited - this is a limited company.
The expense is rent charged for use of Home (which was put on the individuals tax return-not just the £4 a week). I queried that the additional expense would decrease profits which was replied to- that the owners funds within the business are less than they wanted them to be and the rental income would have shown on the tax return. The tax return was approved and signed too. At the time of preparing the information the accounts were checked by the Client and approved so I do have a feeling of unease on this now and glad that we disengaged.
Hi all, (anonymous incase this particular person comes on).
Last year we prepared bookkeeping on behalf of a client, upon completion this was emailed to them for review, query and approval - which was done.
From that bookkeeping we then prepared the accounts, for review and approval which was done.
Due to failures to pay, provide information to us in a timely manner, we disengaged with the client and provided copies of the bookkeeping to date early last year.
The client is now looking for funding and has contacted today to advise we have messed the accounts up and that there is an incorrect expense in there which should be more and that we need to correct the accounts and send a letter to their lender. We responded with details as to where the figure in the accounts came from with proof from the client who provided us with the answers to the query etc and that the accounts were prepared correctly on that basis, reviewed and approved.
The client basically went off on one calling us all names under the sun even though I had shown them that they confirmed the figures in writing and then by signing etc. They admitted that they didn't take much notice of the accounts and just signed them off and that we should have got it right (my psychic powers must not have been working that day) and that they will report us if we do not change the figures.
So after taking abuse, I politely advised the client that if they feel the accounts have been prepared incorrectly then they would need the new advisor (which has made no contact) to look at the previous year.
Now the client (not a new advisor) are asking details of why has this been done, what is within this amount etc -
what exactly do i have to provide? The information was provided at the time the bookkeeping and accounts were prepared- in terms of explanations, copies of the bookeeping etc so this is really just wasting a lot of time.
I have never had a situation like this before so would appreciate some assistance - i will provide what i need to but really going through everything line by line is not productive at all for us - the client should have reviewed and queried it adequately at the time of signing off.