Ok, here's a good one, for approx 3 months last year the director added his bank account to the bank accounts on sage. I have finally caught up with the backlogue of work from when i started working here last month, and decided to try and tidy up all the loose ends from the last financial year.... I have approx £10k worth of invoices which have been paid, but no payment is allocated against them and started fishing through his account for last year too see if i could find any payments that were missed out.....
What i noticed was (apart from multiple payments which would clear up my outstanding creditors) that his personal account was never reconciled, and very few transactions from the actual statement were put through.
Shall i add all these transactions from last year and try to reconcile? I spoke to the accountant about this account briefly (before i realised it had all these payments i needed) and he suggested just journalling the balance to the directors loan account, but i have a feeling i need most of that for my suppliers... Also if i start messing around with his account, will it not make life hell for the accountant as the balance sheet will change?
As always....Any help and suggestions will be greatly appreciated
The first thing that jumps out is why the Directors private bank account is included on Sage. It's seems mad to me.
I'm second quessing that you want to show the payments on the supplier accounts within Sage.
You could use the directors bank account and leave it unreconciled. The possible problem with posting transactions to reconcile his account properly is where to post the non-business expenses.
Alternatively, you could post a credit note on the supplier account, using the personal cheque as a reference and route the credit note to a loan account in the Balance sheet.
Personally, I'd prefer the second option.
Hth.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
I would create a summary of all business income and expenses that were through the personal bank account. Compare this summary to what was brought in through the sage "personal Bank account" and just post the items that have never been brought in.
Just be careful what year end you are posting too. If posted into a previous year where the account have been lodged just speak to the accountant before your start.
I assume the accounts are not audited but to be on the safe side I would send an email to the accountants and get them to bullet point the actions they want you to take.
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Forgive the typo's I generally do not proof read. Just lazy I guess!
