I have been running Sage Instant Accounts for a business for nearly two years hence there being nearly two lots of accounts on the system.
When I produce the Balance sheet report the figure for fixed asets and drawings includes all two years worth of financial transactions. Surely when i ran the year end in effect a line should have been drwan under these figures thus I do not get the 'true' figure for drawings and fixed asets in this business year.
I wondered whether it was because I hadn't cleared the audit trail?! Not sure. Could anyone give me some advice?
Hi Sozzybobs, Quentin is right. Your balance sheet is a report showing your assets, liabilities and captial as at a chosen date. Your fixed assets will depreciate over time so their value will change. Your P&L numbers each year get cleared out to your Retained Earnings which is also a Balance Sheet account.
I understand the purpose of a balance sheet but maybe I didn't explain the problem clearly.
The accountant at end of year 1 calculated a figure for fixed asset depreciation which I entered into Sage using a journal entry the accountant e-mailed to me but it seems that the depreciation has not been discounted from the fixed asset acount. Also the drawings account has not reduced to zero at the start of year 2 so currently shows nearly two years worth of drawings on the balance sheet.
This will be a fairly easy fix. There is a journal needed to correct the opening position and clear down these accounts. The accountant has already given you an adjustment but for some reason he has not cleared down these transactions.
I would email the accountant a brought fwd TB from sage and ask if they would provide you with an adjustment journal to bring the opening position into line (mention the accounts you have per above). This should just take the accountant 20 minutes or so and I would not imagine there will be much fees attributed to this.
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Forgive the typo's I generally do not proof read. Just lazy I guess!
Sorry may have got wrong end of this, have you run the clear audit trail? This will then leave the figures as b/forward to date you have cleared, otherwise balance sheet can go on for years. Donna
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
