Hi, in my new position, the Sage accounts have a total balance of £9k being carried forward year on year, which are historic loan and audit accruals which were not reversed out bank in 2019/20. How can I correct this? If I do a journal in the current financial year, it will incorrectly impact on this year totals. Help?
By the sounds of it all previous years that have been completed since have been misstated too. Processing the correction in the current year is the correct thing to do unless the effect would be so material as to drive you to seek to re-state all the prior year accounts. I suspect this will not be the case.
By the sounds of it all previous years that have been completed since have been misstated
Not necessarily. Sounds like adjustments are just in their working papers and not processed in software. Very common these days, imo by lazy Accountants.
She should not adjust without reference to the auditors first.
