Source data different to bank receipts

What is best practice?

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hi all

Non-cash ltd co. client has a software which they invoice from and mark as payments received. 

When preparing the accounts, looking at the bank income, the sales are in excess of the sales list per the software. It is near impossible to check off the receipts against the software due to bulk payments.

what would be the best practice for this? Take the sales as per the bank receipts so as they are not understated and advise to improve the bookkeeping?

the owner has identified that the manager possibly is making mistakes on the software allocating credits incorrectly to invoices thus reducing the sales report in the software.

msny thanks 

Replies (2)

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By John Charman
17th Feb 2018 03:34

If there's no cash as you say, then yes I would absolutely go off the bank statements. In the event of a HMRC enquiry, they always refer to the bank statements in cases like this.

I'm not entirely sure what you mean by 'allocating credits to sales'. Where would these 'credits' have come from? What actually are they?

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By petersaxton
17th Feb 2018 20:46

this is all madness
you need to understand the numbers, where they came from and what they are made up of

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