Hi.
So i started using vt+ within the business i work in around 18months ago and self learnt it from scratch. Since then I have begun to study aat and become more confident in my use of Vt+ and am now realising some simple mistakes I made when first using the system. For example at the time we were running two business banks account but I run them as one on vt. Needless to say the figure was always incorrect and my reconciliation was poor/to non existent.
Now I reconcile from the monthly bank statements and we only use one business bank account. So I posted a dummy payment to balance the bank to the correct figure and ever since it has been easy to keep track. Is this ok to do? As long as the accountant picks it up for the end of year accounts? I am thinking it should have been a journal entry, but I havent studied those yet in my course, so dont want to mess it up.
Thanks in advance
What was the double entry on the dummy payment please. You can check by finding the payment, right clck, edit transaction and let me know what the entries are.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Ok firstly I press enter twice to start a new paragraph, and yet it doesnt seem to work I will retry with extra spacing in subsequent posts.
Secondly I work for a retail shop and went there as part time helper when I was unemployed 6 years ago. I was a typical sales assistant only. With one other person doing my role and the director. Around 18 months ago I was asked to manage the shop, and then asked to take on most/all the paperwork, majority was purchase invoices, recording sales etc etc. I had no experience of any admin role prior, and got asked solely because I was quote "good on computers"
So I find your tone about good people not getting the jobs quite offensive, unnecessary and unhelpful. I had never fone reconciliations never touched accounting software and certainly didnt understand double entry. But hey everyone starts somewhete, am I am happy with my progression to date.
In answer to the double entry of my post I am only guessing as cant access files out of work time but potentially this?
Payment to supplier:
Bank 17000 credit
Abc (supplier) 17000 debit
No vat analysis, and this balances my bank figure and everything is reconciled and neat in my little world.
Ty
Of late [not directed to you] there have been God awful questions, not just here, but across all forums. I'm starting to think myself the Government should protect the profession.
People are getting paid for it too.
To save a ban - I'm saying nothing else.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
In answer to the double entry of my post I am only guessing as cant access files out of work time but potentially this? Payment to supplier: Bank 17000 credit Abc (supplier) 17000 debit No vat analysis, and this balances my bank figure and everything is reconciled and neat in my little world. Ty
Thanks
It is probably worth letting the accountant know what you've done. You will have a supplier account in credit, which will effectively give an incorrect (reduced) sum of outstanding payments of all creditors, and will distort the balance sheet.
It also means some other entries are wrong, and if the figure is really 17k then the accounts have been misrepresented badly.
Would you be able to add the other bank account on VT, copy the entries from the old bank account that should have been in the new one (very easy to do, right click on transaction, edit transaction, highlight bank and change to new one) That way you correct the existing bank account, ensure the new one is reconciled, and give a more accurate view of the accounts.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Unsure what you mean, both bank accounts have been loaded already but both under one account within VT. Should I go through and seperate them (edit and choose singular bank account) which may take time but will result in everything being right?
Hi Lee
Not sure what happened on the paragraphs bit, but if once you've done it and it looks like that then you can edit it to add them. (If using a mobile, try a PC or other device).
what data is in VT, specifically:-
When was the start of the financial year?
Was the prior financial year done in VT and did that also have 'the one bank account' issue?
When did the accountant last do the accounts (to which year end date) and have they done any adjustments?
Roughly how many entries?
Are you vat registered?
The materiality issue is key for a reason, which I will explian in a bit more detail later.
Do not do ANYTHING until we have the above answers.
In this case, Johnny, Lee clearly hasn't got any support and has been dropped in it. Only thing I would normally say is that if 'requested' to do something by a boss that your are inexperienced in, such as a subject like this that needs considerable training and none is given BEFORE the job starts then never ever ever be afraid to say no (or agree once the basic training is complete) That said, I know Lee from another forum and think it's great he is getting some training now and trying to do the job as best he can with his current knowledge skills. Besides it may well have been a case of do this or you don't have a job, we don't know the circumstances.
The problem is Lee, at this stage you may be happy with how you have been doing...but you don't know what you don't know. But we all have to start somewhere and it's good that you are asking. I understand And often share Johnny's frustrations in this area though, but it's more applied to those who set them up as self employed with only a little knowledge (or worse, zero)
Johnny- He can't help having a cretin as a boss, who either couldn't be arsed paying for already qualified help, thinks bookkeeping is easy enough to drop someone into doing it before training. Agree we have had some bloody dreadful questions on here the last few weeks, worse still, in some cases, some gawd awful answers from folk who are supposedly trained and working in the industry! Could be worse, should see some of the gawd awful answers on another forum.
__________________
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 and thank you for your reply. Start of the financial year is 1st April 2016. The last accounts that were done were ending march 16 they were prepared and submitted by the accountant december 16.
It is still running as one bank account which is now technically correct as the other account in the realworld is dormant. Entries were made from both banks barlcays and santander into Vt from march 14 through to july 16. I am waiting for a list of adjustments to correct all my errors/system. I realise now I should have waited for the adjustments before posting my own rogue payment to reconcile .
And yes we are vat registered. I feel confident with the vat aspect and am certain returns have been managed correctly. (This is also done by myself).
I am sorry for such a grumpy response, but at least I am learning more each day, today I have learnt not to tinker and mess if I dont fully understand the ramifications. I will wait for the adjustments to come through. And anything I see that isnt cleared up (i.e outdated unallocated invoices) I will raise with the accountant. Thanks for everyones responses
-- Edited by Muzzy2kuk on Saturday 11th of February 2017 11:44:03 AM
It is still running as one bank account which is now technically correct as the other account in the realworld is dormant. Entries were made from both banks barlcays and santander into Vt from march 14 through to july 16. I am waiting for a list of adjustments to correct all my errors/system. I realise now I should have waited for the adjustments before posting my own rogue payment to reconcile .
Apologies, I hadn't realised that the 2015-16 accounts were with the accountant. It is likely they will give you the necessary adjustments up to 31st March 2016, which should go a long way to correcting that rogue payment.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
It is still running as one bank account which is now technically correct as the other account in the realworld is dormant. Entries were made from both banks barlcays and santander into Vt from march 14 through to july 16. I am waiting for a list of adjustments to correct all my errors/system. I realise now I should have waited for the adjustments before posting my own rogue payment to reconcile .
Apologies, I hadn't realised that the 2015-16 accounts were with the accountant. It is likely they will give you the necessary adjustments up to 31st March 2016, which should go a long way to correcting that rogue payment.
They will have been submitted John. Issue is - what paperwork does the Accountant have to be able to complete the year end? Another one for Lee then. If they had all supporting paperwork including cheque book stubs then it might be all ok, assuming the adjustement was in that year end (which Im waiting for clarification). If not they may just assume it was an unpresented cheque.
__________________
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
Unsure what you mean, both bank accounts have been loaded already but both under one account within VT. Should I go through and seperate them (edit and choose singular bank account) which may take time but will result in everything being right?
I wouldn't do anything now until you have the adjustments to hand. After that see what the discrepancy is and work from there. Seems like you've come a long way since you started and that's an immense credit to you.
My first foray into accounts was a similar one. In 2005 my boss gave me a copy of Sage Instant and asked me to do the accounts. I was fortunate to a/ enjoy it and b/ not make too many cock ups. The accountant was approachable so I was able to ask questions as well.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
It is still running as one bank account which is now technically correct as the other account in the realworld is dormant. Entries were made from both banks barlcays and santander into Vt from march 14 through to july 16. I am waiting for a list of adjustments to correct all my errors/system. I realise now I should have waited for the adjustments before posting my own rogue payment to reconcile .
Apologies, I hadn't realised that the 2015-16 accounts were with the accountant. It is likely they will give you the necessary adjustments up to 31st March 2016, which should go a long way to correcting that rogue payment.
They will have been submitted John. Issue is - what paperwork does the Accountant have to be able to complete the year end? Another one for Lee then. If they had all supporting paperwork including cheque book stubs then it might be all ok, assuming the adjustement was in that year end (which Im waiting for clarification). If not they may just assume it was an unpresented cheque.
Yes I agree, and should have clarified that more clearly. The first thought on reading the original post last night was. would the accountant have sufficient info to pick up the discrepancy(s)?
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Ok so. The accountant asked for lots of different things including all bank statements credit card statements etc etc.
The bank did not reconcile in my system at year end march 16. I presume the accountant worked that out and factored it in, I told him this upfront when they took all the reports from vt+.
The dummy payment as i am calling it was posted after year end, i think around november/december time. And will obviously make sure I point this out the accountant sooner rather than later.
-- Edited by Muzzy2kuk on Saturday 11th of February 2017 10:37:51 PM
makes life a lot easier. As you pointed it out the Accountant should've hot the thing to balance and it should be in the year end adjustments. For the dummy record you have keyed at your end to put things right, for now, instead of purchases stick the amount in suspense. It will then not be overstating the purchases and can be reversed from suspense when you re keying the dustmen ta. Worth telling the account so he reflects that in the adjustment instructions he sends you.
If the now dormant on his nothing in it, then ignore. If it has a few pounds then you will need to set it up (with the balance coming from suspense (again under advice to th Acountant).
You should at least be able to balance and reconcile then as you go, plus the year accounts will not need to be re-stated.
__________________
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
Ok brilliant. Think the dormant account has a minimal balance so will neednto look at that. In terms of sending the payment to suspense account, how do I do that?
Thanks again for all ur time in this post.
Hi Lee
I don't think there is an account called suspense in VT, can't check it just now as not in front of it. But just create one, can go anywhere in the chart of accounts as its a just a temporary dumping ground and then change the dummy post purchases side to the suspense. Or if the opening balances creditor contra account is nil, use that one.
Whatever you do from the above I would be tempted to send the Accountant screen shots of the dummy entry as it is, then the correcting entries including the dormant bank account, ASAP and ask him to build that suspense balance into his closing (or opening) balance instructions.
Hth
__________________
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
Ok going to do the suggested on the above issue. Should I start a new topic or can I ask another hopefully smaller question here.
When loading credit card transactions onto vt+ should I wait till the end month statement is issued, load all transactions then reconcile that statement.
At the moment I am loading some payments at time payment is made (i.e I make payment and allocate to an invoice) but when I am not in work payments are made and not recorded anywhere so I have to catch these up off the statement. Obvs this means most the month the credit card balance isnt correct until I complete said statement at month end.
-- Edited by Muzzy2kuk on Sunday 12th of February 2017 10:41:43 AM
I tend to wait until I get the credit card, but it's just my preferred way of working (although I'm not at clients every day, so it helps me focus on one task at a time). Up to you, find a method that suits you as that way the workflow just works better.
Whilst I think on, I've just mentioned it to a new bod, can you please add your first name to below the signature bar (via edit my profile section) -helps people looking it up each time they rspond. Thanks
__________________
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
