Hi there - I do some basic bookkeeping for a company. The manager of the company also has her own limited company and wanted me to help sort out her income and expenditure for her year end - it was basically a carrier bag full of receipts from the previous year.
I have recorded all the expenditure on an excel spreadsheet - categorising it. However my main query is with the bank account - will the accountant want to see this reconciled? If so should I do a bank reconciliation on Excel. There are no creditors at year end as everything is paid by cash but will the accountants want to see the debtors figure?
The accountant would prefer the bank to be reconciled, and a reconcilliation on excell is as good as any. You can analyse all the receipts and payments out on a spreadsheet and then put the total receipts and payments into a bank control account to prove that you have all the transactions in the year. Also having it on excell makes it easier for the accountant to move things around.
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
If there's debtors outstanding at the year end, then yes the accountant will need to report them. Regarding the bank account, if one exists (and it should) you definitely should reconcile it.
Quite often there seems to be an assumption amongst owner-managed companies that there isn't a difference between them and the company but in reality they're completely different legal entities. In my opinion, part of the reason for reconciling the bank account is to confirm that "the companies money" isn't being used by director for personal expenses. If that's the case then the Director owes the money back to the company.
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.
