Good afternoon. I have just taken on a new client for both bookkeeping and payroll and have been asked to perform year end. The net wage totals do not tally with what has actually been paid and when I asked the director why this was, he said to write the difference off to expenses. He can't produce any receipts to back up an expense claim and he does no P11D reporting. How do I respond? Please help.
I Wouldve just asked for reports as many Director's will give you the fob off if you ask such a question as they havent got time/cant be bothered going digging around to find the answer when they consider it is 'their job'. All completely the wrong attitude I know, but just the kind of response I know I would get from many of mine!
So - who did the payroll before? Do you have access to the payroll software? Do you have access to the bookkeeping software? You need to get full payroll reports - P11s are probably the best bet from the payroll and then tick back to the breakdown on the net wages account, with the benefit of Bank statements showing the payments to staff if needs be. Could be something dumped to the wrong account code or anything.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
