Have just started at a firm which is 15 mths old have never submitted any accounts and manual records have generated the quarterly vat returns thus far. Internal controls don't look good ditto bank recs. Part of my brief was to reinvent the wheel, reconcile the bank and post transactions retrospectively onto sage which we have now done and we are in a position to file a set of accounts. An audit is imminent too. If we're now confident that the books and records agree to the transactions and we have the paperwork to back up the cumulative vat position...is it enough to just submit the next vat return with the cumulative data we can vouch for and effectively come clean on a catch up (probably payable)? Or do I have to embark on the mother of all reconcilliations to vouch all the individual errors that have occurred and all the ommissions and mispostings of the previous 15mths! The back up documentation is slightly better than the back of an envelope. How useful and neccessary would such a reconcilliation be even if it is possible? Any help much appreciated. Thankyou.
As long as the net adjustments are less than £10,000 (and can therefore be done on the next VAT return), I think I would be inclined to work out the cumulative figures for all boxes, then deduct anything previously reported on the VAT returns. This cleans up everything, and you have the records to show your workings.
Thanks guys. I agree that reconcilliation is a soul destroying and to my mind pointless task. Equally so long as we're comfortable with the liability at the yr end I can't think that the auditors would care, would they? Cheers
