I've been getting everything together to send to the accountant for year end.
Is there anything I should be checking before sending? I have no idea where to start to ensure that there are no mistakes, or if there is I am aware of them incase the accountant rings up.
Do you have some sort of routine before sending to the accountant?
-Copies of the vat returns and supporting schedules ( they will probably want to agree net outputs per vat returns to sales in the accounts so they will need the output figures from these.
I would also make sure the balances on the supplier accounts reconcile to statements.
They always like to have copies of invoices for any fixed asset additions and disposals.
I would make sure the paye/ni creditor agrees to the last months payroll
I would also provide a list of any prepayments and accruals.
Depends how far you take the accounts but if a bookkeeper was giving me say a SAGE back up with working papers then i would like to to see the following
1. Fixed asset register agreeing to accounts with copies of significant additions/disposals
2. Bank reconciliation with copy of year end bank statement
3. Debtors and Creditors list agreeing to control account. (with explanation for any minus amounts or any large amounts in the older columns).
4. VAT returns for year together with back up documentation with reconciliation agreeing to accounts.
5. PAYE/NIC reconciliation agreeing balance in accounts to PAYE/NIC due.
6. List of stock/work in progress.
7. List of prepayments/accruals (with copies of documentation re significant balances.
8. Copies of any new agreements taken in year eg bank loan, HP agreements, operating leases
9. Analysis of any tax sensitive P&L accounts together with any significant invoices eg repairs/renewals, sundries, legal and professional, entertainment.
10. Copy of SAGE back up for the year with copy of profit and loss account/balance sheet/trial balance and profit and loss account nominal for year.
11. Nothing in suspense or misposting accounts.
That would be pretty much the ideal file to get from a bookkeeper. Dont think have ever got that mind you.
Best thing to do is speak to the accountant and find out what they would like you to give them and build up that communication link with them.
Depends how far you take the accounts but if a bookkeeper was giving me say a SAGE back up with working papers then i would like to to see the following
1. Fixed asset register agreeing to accounts with copies of significant additions/disposals
2. Bank reconciliation with copy of year end bank statement
3. Debtors and Creditors list agreeing to control account. (with explanation for any minus amounts or any large amounts in the older columns).
4. VAT returns for year together with back up documentation with reconciliation agreeing to accounts.
5. PAYE/NIC reconciliation agreeing balance in accounts to PAYE/NIC due.
6. List of stock/work in progress.
7. List of prepayments/accruals (with copies of documentation re significant balances.
8. Copies of any new agreements taken in year eg bank loan, HP agreements, operating leases
9. Analysis of any tax sensitive P&L accounts together with any significant invoices eg repairs/renewals, sundries, legal and professional, entertainment.
10. Copy of SAGE back up for the year with copy of profit and loss account/balance sheet/trial balance and profit and loss account nominal for year.
11. Nothing in suspense or misposting accounts.
That would be pretty much the ideal file to get from a bookkeeper. Dont think have ever got that mind you.
Best thing to do is speak to the accountant and find out what they would like you to give them and build up that communication link with them.
Regards
MarkS
That would be an awesome file to get!
I always say to clients the more they do themselves, or get the bookkeeper to do the cheaper my fee!
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MarkS your spot on with that. That would be an ideal format of a file to pass to the accountant. In spread sheet form will do the trick.
Unfortunately most business owners have no idea because they are never told how to do it. A lot of accountants don't know how to communicate this to the client which puts more work in the accountants hands and a higher fee for the client to pay.
If you have a good accountant who actually meets the client to discuss the year end accounts (many don't for smaller clients ie "C" clients) then areas for improvements are usually conveyed in the meeting, however clients will go away and forget it all or not even understand what they were told. Accountants seem to forget or not realise that the clients need showing what to do, not telling!
On the other hand, having bookkeeper that knows what an accountant does and how they work when they prepare the year end accounts is a rare find. Unless they have many years of experience (still not guaranteed though) or perhaps worked in practice (I have for 10 years) a good bookkeeper will do all this for you.
However Noola back to your point on what to check, If you go over MarkS list, do you actually know what you have to do for each of the points and how to prepare it in a format that the accountant will easily understand? All very well having the list, but if you unsure on how to proceed, im sure MarkS will give you further points or is you wish to email me I can perhaps put together some spread sheet templates that I use for me clients.
However Noola back to your point on what to check, If you go over MarkS list, do you actually know what you have to do for each of the points and how to prepare it in a format that the accountant will easily understand? All very well having the list, but if you unsure on how to proceed, im sure MarkS will give you further points or is you wish to email me I can perhaps put together some spread sheet templates that I use for me clients.
I think that is where anyone who has minimal experience falls down, you may have an idea what information is required, however, like you say putting it into an understandable format is a lot more difficult and the area where I personally fall over. I for one would be interested in pointers or ultimately templates on the best way to convey this information, I tend to end up with a lame looking spreadsheet that only makes sense to me
I would suggest having a quick word with the accountant. Just explain that you want to get it right and ask what they want. They should have a good idea.
While I agree with everything said so far. Don't forget to review your nominal ledger (on Sage) because, even if you've posted everything yourself, there is always the day when you misposted to the wrong nominal. A quick scan through usually picks up little mistakes that make you look like a fool (speaks from regular personal experience of looking like a fool!)
And I usually put in a little report explaining any unusual entries. Nothing fancy, but looks professional and usually saves lots of queries down the line (especially if the accountant sits on the books for 6 months before starting!)
