I am in the process of setting up new accounts using sage cloud. The previous accounts were done by another accountant upto 2021. The small business has been paying off a loan. The old accountant used his own software so we now need to setup accounting using the new sage cloud. Can any one tell me how to enter an existing loan that has had partial repayments.
This isn't really a sage question but rather how do yopu get the required information question.
If both you and the incumbant account are members of recognised professional accountancy bodies (ICAEW, ACCA, etc.) then professional ettiquette states that you are entitled to the last set of prepared accounts and the trial balance upon which they are based. You are not however entitled to working papers or the actual data upon which the trial balance is based. The underlying documentation (invoices/receipts/bank statements etc. but not the working papers) belongs to the client not the practice and should be returned to them once all outstanding bills have been paid.
The closing trial balance should be all that you need in order to create the opening position in new software.
If the accountant does not supply the financial statements and trial balance in a reasonable time then a complaint can be lodged with their professional body who will order the minimum required paperwork be released. In some instances arguements over outstanding payments may be upheld by the professional body so you need to ensure that the clients account is completely up to date before pursueing that.
Note however, professional ettiquette is between accountants of recognised professional bodies. Bookkeeping bodies are not recognised as accountants so no obligation exists and provision of the documents would not be enforced by the professional body.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
