I've started working with a new client last month. Their previous bookkeeper left in the middle of last financial year and the bookes haven't been touchted since then.
As it's time to file the last year accounts I've entered all last year transactions in order to send books off to the accountants.
I've been asked by accountants to match my Trial Balance with new TB they've just send me to agree our opening balances for the new financial year.
I'm not sure what to do...
What shall I do with all the diferences in balances? Shall I just open a suspence account and create journal entries using suspense account?
Sounds like the year that you have sent off to the accountants has been finalised and they are giving you the opening trial balance for the current year based on the final signed accounts in order you can update your opening balances to match.
If not sure what to do I would get the accountant to come out and update your system.
I would expect most accountants to include this service as part of their fee to do the accounts. I certainly do it for my clients as means you I can be confident that next year the opening balances agree to the accounts and I dont need to go trying to identify what differences are.
Has the accountant put through the prepayments, accruals, closing stock, depreciation etc. It might be just a matter of putting these year end journals through to your accounting system to match the opening balances. Hope this helps.
You only need to put through the balance sheet movements in to the system. As Mark says your accountant should be able to provide this journal and explain it as standard.
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