I'm preparing the year end accounts for a small charity. I'm quite happy that the figures I have are correct for all the in-year transactions. We started using Sage Cloud part way through the year so I've run manual & Sage accounts for the FY to check everything agrees.
I've reconciled each individual account manually (opening balance + income + transfers in - expenditure - transfers out = closing balance).
I've produced an extended trial balance for year end adjustments and a manual balance sheet & I&E account, which all agree with the manual records & sage.
I've checked the opening balances for the year agree with last years closing balances.
I thought the total balance of funds of the charity on the balance sheet at the end of this FY should be the balance of last FY retained expenses + this years retained income, but it isn't. Any ideas where the difference might be please? I only do accounts for 1 charity once a year & it's driving me mad! Many thanks. Tracey
Replies (27)
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hard to understand the problem then (without seeing it), but if the TB balances but the accounts don't, then don't you just need to tick the BS accounts in the TB to the BS in the accounts and P&L and funds> funds?
Has anything been posted in the reserves nominal by accident?
Has anything been posted with a prior year date?
The current year's extended trial balance will have a line for charity funds brought forward from last year (or something similar)?
This should equal last year's charity funds
If it doesn't you need to check Sage and/or your adjustments until it does.
Are your c/f charity funds from last year equal to your b/f funds in this year's accounts?
If they are you need to investigate why the profit in this year's extended TB isn't what you think it should be
Is there a problem with the Chart of accounts so something on the TB is not ending up where you expect it to be in the accounts?
No direct help re your issue, but the best approach I have ever had re these sorts of issues is put it aside, go and do some other work for a few hours, pick it back up later and revisit- the human brain appears to become reinforcing re seeing what it wants to see not what is there, breaking the historic checking from the current checking often unlocks the issue in a Eureka moment (without the bath)
I would suggest checking exactly what makes up charity funds as atleastisoundknowledgable suggested 45 mins ago (It should only be made up of last year's funds plus this year's profit for the purpose of your check)
Yes. Have you got all the accounts correctly set up as either P&L or Balance Sheets accounts?
Are the balances of the individual accounts which comprise your retained funds calculation correct in the TB?
If you have a balance sheet have a look why the assets and liabilities of the business which are clearly set out differ from what you think they should be?
I think you must have lost the plot with your check calculation as everything seems to be in order from what you say.
Thank you for all the Thank yous - people will start mistaking me for a helpful member of the AWEB community
I often find that problems with a charity's accounts revolve around fund accounting. But it sounds as if you have done everything right and treated the funds on an "overall basis". Are there any movements not done through Sage? e.g. have you got a one sided funds transfer?
Your last paragraph isn't strictly correct. You would need to allow for "prior year adjustments". Suggest you run a P & L Account for the date range "brought forward to brought forward". You can then discount this as a reason. You don't say whether you've closed off the year end yet.