New Accountant email received today

Not sure what to make of it.

Didn't find your answer?

Just a moan

Client departed six months back and got email today that the statutory accounts do not match the figures in the Xero.  They never gave any information,

The client said they need the Balance Sheet schedules for last three years as they need to amend the Corporation Tax Returns

I always ensure the statutory accounts match the accounting software so very confused by the email.  In fact the accounting software is linked to the statutory accounts software.  

 

Replies (37)

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By D V Fields
23rd Apr 2024 19:10

Maybe deliberately or otherwise postings were made to the year after the accounts were compiled.

If you have the trial balance used why not provide them that (via Client) and leave them to it?

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By rmillaree
23rd Apr 2024 19:47

unless you lock it down at time you finalise year end it can end up in mess like this

as long as you have exported excel tb and transaction history to save as your working papers everything will be fine from your end email those over and say thats how it was mukka not my problemo.

If you dont have your calcs saved this is the nightmare you can end up with - such an avoidable shambles is a pretty often event nowadays.

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Replying to rmillaree:
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By taxwizard
24th Apr 2024 11:12

Yes I export everything PL, BS, TB and GL

Don't know what the problem is

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Replying to taxwizard:
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By rmillaree
24th Apr 2024 11:40

Don't know what the problem is

there shouldnt be any IF the op has that info ready to email over send over and pass the problem onto new accountant !

note perhaps there can be a middle ground here if the xero dient match up at the date of transfer - ie it went astray under watch of op but they hadnt realised

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Sandman
By Mr Sandman
23rd Apr 2024 20:01

Presumably the client approved the accounts, before they were submitted ?

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Replying to Mr Sandman:
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By taxwizard
24th Apr 2024 11:12

Yes

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Replying to Mr Sandman:
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By taxwizard
24th Apr 2024 11:12

Yes

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Replying to Mr Sandman:
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By taxwizard
24th Apr 2024 11:12

Yes

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Replying to taxwizard:
paddle steamer
By DJKL
24th Apr 2024 11:32

Have you been watching "When Harry met Sally"?

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Replying to DJKL:
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By rmillaree
24th Apr 2024 11:41

ooooh ahhhh just a little bit - as Gina would say

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Replying to DJKL:
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By Tom+Cross
24th Apr 2024 16:02

Yes. Yes. Yes. Yes. Yes.
Or as the guy used to say, in the "Vicar of Dibley" - No. No. No. No.

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Replying to Tom+Cross:
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By FactChecker
24th Apr 2024 16:47

... but only as preamble to invariably concluding 'Yes'
(which could get you into a lot of trouble nowadays).

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By Roland195
23rd Apr 2024 20:07

I'm not sure how they have made the leap from the accounting system doesn't match the statutory accounts therefore the accounts are wrong and require to be amended.

I wouldn't be inclined to provide any more information than you have already unless they can offer a better explanation.

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Replying to Roland195:
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By AdamJones82
23rd Apr 2024 20:23

Yes, 99.99% of the time it means the accounting software needs revising to match the accounts !!

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Replying to Roland195:
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By rmillaree
23rd Apr 2024 20:32

i guess its simple case of not enough info to say whats up doc - it could be the accounting adjusts are independent of the fact the the tb doesnt tally to software - who knows though.

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RLI
By lionofludesch
24th Apr 2024 07:39

Tell them the accounts are fine and blame the client - which is more than likely the answer.

I'd give them a TB at the opening date of the subsequent accounts though.

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By Yossarian
24th Apr 2024 08:09

Unfortunately it's very easy in Xero to go back and amend, add or delete transactions in previous periods, often with no audit trail showing that this has been done. Although previous dates can be 'locked', a user with the necessary rights can simply remove or change the lock date.

Surely though the new accountant should be fully aware of this (very likely) explanation? They sound like a bit of a pillock (technical accountancy term).

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Replying to Yossarian:
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By taxwizard
24th Apr 2024 11:14

Yes, I think I need to lock the accounting periods in future. I did explain this could be the reason.

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Replying to Yossarian:
the sea otter
By memyself-eye
25th Apr 2024 17:11

Like the 'Horizon' software then?

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By pr27
24th Apr 2024 09:03

We had this problem a few years ago. Client moved to a new accountant who could assist with bookkeeping. New accountant emailed me to say the Xero balances were out, could I post in opening balance journals. Was 99.9% sure this would have been done so logged in to take a look. Sure enough, our journal was sat there. Ran a TB to check retained earnings and was way out. The lock date had been removed and two directors personal bank accounts had been added and reconciled with 3+ years of transactions going through them.

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By 0098087
24th Apr 2024 09:06

Never known any accounts to agree with the clients accounting software except one. Clients mostly don't have a clue what to do and no amount of explanation seems to make a diffrence.

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By ireallyshouldknowthisbut
24th Apr 2024 09:29

I would send the TB I downloaded when it *did* work, and detailed GL.

and just say "well it worked on XXXX" when I prepared the file. Fully reconciled all posted back etc etc. Discrepancies arising since this point aint down to me sunshine.

I do sometimes get accounts through where the "accountant" (and I use that losely) has not reconciled back to the bookeeping or entered any corrections which is always fun to fix up. You do wonder where some people are trained. Presumably they just "picked it up". Or dont have a clue as I call it.

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paddle steamer
By DJKL
24th Apr 2024 09:55

Nothing changes.

Back in the days when client kept manual ledgers it was not uncommon to find that year end entries had never been posted into the ledgers, often journals had not even been supplied to the client.

We ourselves were not always innocent, we kept the general ledgers for a number of clients (they did the daybooks) and I more than once discovered they had not the previous year been corrected in line with the accounts adjustments made ; everyone too keen to finish job and get fees out without dotting the Is and crossing the Ts.

I certainly recall the 90s discussions as to whether accounts prepared via daybooks and posted into an ETB were even proper accounts for a company to keep per the CA(hence even if prepared that way a general ledger was posted up to ensure the company had kept "proper accounting records").

Even now, re one employment I have, I prepare to ETB stage but external accountants prepare accounts and do tax entries and anything they spot of mine that needs corrected (usually/hopefully nothing), yet each year I have to chase them for their TB in order that I can start the following year (which I must do soon as YE is 30.4.24) with the correct closing position.

Two advantages of manual ledgers- tricky to insert backdated postings in error thus disrupting balances and they are more aesthetically pleasing than computer printouts.

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Replying to DJKL:
RLI
By lionofludesch
24th Apr 2024 12:04

DJKL wrote:

Two advantages of manual ledgers- tricky to insert backdated postings in error thus disrupting balances and they are more aesthetically pleasing than computer printouts.

Mmmmmm - private ledger with a lock.

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Replying to lionofludesch:
paddle steamer
By DJKL
24th Apr 2024 15:28

I have one, albeit lock is broken- it is coming home with me when I retire , it will be an exhibit in my ,to be created ,"Museum Of Accountancy".

Will call my daughter in law who does museum displays etc with the Smithsonian and get her to organise matters, just have to tell my other half we are having such a room. If daughter finally leaves home I could snaffle her study, was going to be another bathroom but one needs to get priorities sorted- accountancy museum or another shower, no brainer.

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Replying to DJKL:
the sea otter
By memyself-eye
25th Apr 2024 17:14

The 'museum of accountancy' is one that I, along with 99.9% of the population would never wish to visit.

Fascinating though I'm sure it would be....

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Replying to DJKL:
By Nebs
26th Apr 2024 10:41

Perhaps you could invite HMRC to contribute some exhibits for your museum.

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By 0098087
24th Apr 2024 10:01

It doesn't help when you can't change the year end date on Free Agent.

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Replying to 0098087:
RLI
By lionofludesch
24th Apr 2024 12:06

0098087 wrote:

It doesn't help when you can't change the year end date on Free Agent.

That's going to be helpful in 2024.

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Replying to 0098087:
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By Southwestbeancounter
24th Apr 2024 15:03

Oh really?
I've got one client on Free Agent who I need to change his year end from 30th April to 31st March but I haven't looked at it yet.
Ugh! Nothing's ever simple is it?

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Replying to Southwestbeancounter:
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By 0098087
24th Apr 2024 15:24

Client told me she rang them a few months ago And they working on it

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Replying to Southwestbeancounter:
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By pr27
24th Apr 2024 20:05

Contacted FreeAgent years ago on this. There response at the time was to start up a new FreeAgent account.

We just run a transactional TB now for the dates we want, export into excel and then post this against the opening balances to get the year-end balances. Convoluted but it does work.

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RLI
By lionofludesch
24th Apr 2024 12:12

Have you asked them if they wish to appoint you as consultants to solve their problem?

"Our fees are £xxxxxxxxxx per hour."

Usually gets shut of difficult accountants.

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Replying to lionofludesch:
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By D V Fields
24th Apr 2024 21:41

Nice one. With a minimum charge too.

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Replying to lionofludesch:
the sea otter
By memyself-eye
25th Apr 2024 17:16

Where, in all those 'X's' is the decimal point?
Just so I know for future reference..

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Replying to memyself-eye:
RLI
By lionofludesch
25th Apr 2024 17:28

Decimal point?

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By rjmannaca
26th Apr 2024 10:14

I agree with other responders, just send them the TBs from Xero in earlier years and your journals reconciling to the final accounts.
My experiences of Xero include a client who entered the bank transactions manually but made many mistakes and didn't reconcile the bank account.
When they discovered they could use the bank feed and download the transactions, they thought this would solve their problems and promptly downloaded 'ALL' the bank transactions and accepted the default Xero descriptions and nominal codes - misdirecting many transactions to the wrong nominal accounts.
When I discovered this, when preparing the accounts, I offered them the opportunity to go through and delete all the manually entries and reanalyse the bank feed entries otherwise I would have to do it for a fee.
They eventually asked me to do some of it, luckily there was not a huge volume of transactions and I think they learned a valuable lesson.
I makes me wonder if something similar has happened here.

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