Hi everyone - I'm new on here and don't find blog things easy to use.
Hope you will bear with me as I am an AAT L3 student and have just started a job full-time in Accounts using SAGE 50.
I was wondering if anyone had any ideas on how to sort out a Petty Cash account on SAGE that hasn't been reconciled since 2008 and bears no resemblance to the actual money in the Petty Cash Tin! It was ticked as 'do not reconcile' on SAGE.
My year end if May 2017.
No real idea where to start although I have created a s/s for a Day Book and am going to work backwards from today's date using the balance in the Petty Cash Tin as my final balance.
The petty cash account having "Do not reconcile" set is not a surprise.
Consider that the 'reconcile' option is aimed at bank accounts where, traditionally, a cheque might be sent out to a supplier (and be accounted for immediately) but might not be paid into their bank account, and therefore appear on yours, for a few weeks. That's not something that happens with petty cash - it's all cash, therefore it's all immediate. Provided everything is properly recorded, therefore, it should not need 'reconciling' in the sense of a bank reconciliation.
However, as we all know, that's the theory - and in practice, business personnel exist to test such theories... sometimes to the limit and beyond.
Your real starting point is to consider just how far out the amount in the petty cash tin is compared to what's shown in Sage - is it a significant / material amount?
Also, given that you've just started, it might be worth looking at the opening balances. It could well be that the opening balances haven't been updated to match the final accounts - not uncommon. If so, getting hold of last year's closing balances and adjusting Sage might very well reduce* that petty cash difference.
* Or it could increase it. You never know. :)
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Welcome to the site Maggie
Great to see you on here at last, hope you have managed to get your login in sorted (if not, I will continue to chat offline and hopefully sort it soon, once this blithering t'internet is working fully again)
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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
Hi Joanne
I was using my email instead of my name - Doh!
Having a great day - just sorted out the Petty Cash nightmare mentioned above.
Transferred all the prev years to a temporary N/L and the Accountant is going to sort it out at Year end in May 2017.
Who knew that Post Office Services were so complicated with their VAT.
I am getting to know the VAT codes quite well after inputting around 50 receipts today.
Hope you get your internet sorted out.
Maggie
