Following on from a previous post, Bad Bookkeeping, I have taken on another client who is in a bit of a mess.
My first port of call in this sort of situation is usually the bank rec to make sure that everything has been posted correctly. In this instance though, I'm at a bit of a loss. The accountant has supposedly been doing the bank rec, but I think they've been doing it manually as my clients Sage is showing as un-reconciled since, well, forever.
My question to you, is how do I get around this? I was planning on starting at the beginning of this financial year and reconciling from there onwards, so do I enter the opening balance as shown on the bank statement?
The previous bookkeeper, who I am to be working alongside, seems to have a manual as well as a computerised system going on. This is going to be one interesting project!
Sounds like you've taken on a good one here I would find out what the accountant's figure is for the opening bank balance and see how much it differs from the Sage balance (if it differs) and if there were any outstanding cheques/receipts from the end of the year and start there. It must be the Book balance and not the actual bank balance, as remember you are reconciling the Cash Book with the bank statement.
At least you are working alongside the previous bookkeeper and haven't just been dropped in at the deep end with nobody to ask questions of!
off to Meadowhall now to pick up my new office desk off someone having an office clearout. Very excited cos it's shiny and huge.
Hope that you have a great day,
all the best,
Shaun.
p.s. wakes up indeed. I'll have you know.... Ok, it's a fair cop.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I would find out what the accountant's figure is for the opening bank balance and see how much it differs from the Sage balance (if it differs) and if there were any outstanding cheques/receipts from the end of the year and start there. It must be the Book balance and not the actual bank balance, as remember you are reconciling the Cash Book with the bank statement.
