Hi I have recently taken on a new client selling online products. I have taken a Sage backup from their office to have a look at what has been done already, their year end is December and there was Nov & Dec to complete. I am using this data to start afresh using Sage one which they are paying for.
After chasing their suppliers for invoices and having a look at the accounts there hasn't really been anything done for years. The bank balance shows an overdraught of hundreds of thousands because nothing has been entered as income, nothing has been reconciled. Basically all that has been done is the supplier invoices logged and then paid. I have asked for the sales figures for the year, payroll info, Directors loan/dividends, VAT returns etc so maybe get that soon.
No year ends have been completed for the last 3 years either. Bit worried about this to be honest as they are a limited company but there doesn't seem to be any 'proper accounts'.
The person who engaged me to do the bookkeeping is a new director who has bought into the company and as far as I know hasn't seen the accounts, he just asks for management spreadsheets. They have an accountant who does the wages and year end but it doesn't really seem to fit if you know what I mean.
Any advice about anything would be greatly appreciated.
This one sounds like a challenge! Have you checked Companies house to see what has been filed for the previous 3 years? If you can see those then you will have an idea of what has been done in the past. At least you have come in near the start of a new financial year and can make everything correct from here on in. Can you ask the current accountant for balance sheet etc?
I'd see if you can't arrange to visit or call the accountant to have a chat. If there is so much missing from Sage how were the last three years of accounts produced? On Excel? Some unknown 'in-house' method? Either way, the accountant needs to know you are there and they can expect somewhat better records in future :)
As with Meadowlands comment - you need a set of opening balances for Jan '14, might not be perfect but better than working blind.
I assume you are planning to rebuild the 2014 accounts (i.e. year just ended) but if you were planning on starting from Jan '15 life gets easier - though you won't get opening balances for a few months as the accountant gets his part done.
