A new customer who came to us last year had shocking bookkeeping so we put them onto xero and actually they have done a very good job. The only failing seems to be on the cash transactions. The bookkeeping shows a £5,000 difference at the year end to the amount that they actually held (counted at the time). The client has gone through the cash transactions - confirmed the sales are correct, transfers out and expenses etc and does not deem there to be any more. The client has also advised it would not be normal for them to retain cash as drawings but in the absense of any other information they would "suck it up" as drawings in the year. They will closely monitor this this year to determine if any theft is taking place or invoices going amiss.
Would this be best to allocate to drawings or is there anything else that can be done?