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Hi
I am sorry if my answer seems strict, but I am hoping it will guide you the right way and help
I would ask the previous accountant to provide the bank reconciled Balance and the bank book balance with the o/s Dr and Cr so that you know you are starting off correctly. If they cannot then you need to inform them their rec is incomplete and ask the new accountant want they want you to do. If it is down their lack of double checks , then they should sort.
I am little concerned that you have not checked this out before you started, as this is the basics of completing Recs . I sorry if I have misunderstood , but is my understanding from your post. Please accept my apologies if you have already done this.
I would also be very concerned if I was a client and it was regarded anything Less then 5 % if it takes to long could be written off if the accountant agree. I strongly disagree with any balance been written off, this is down to incorrect entry. If it helps and you are using sage . It has pdf of every statement . Start and closing balance in the view history on the rec screen.
Its personal view , but I have a problem if the bank rec does not agree. It could be a creditor not paid or even paid twice or Debtor entered incorrectly paid and infact is still outstanding. The client now may have lost money .
I have to question 5% of what the bank balance of say 50,000 or 100,00 for example that is £2,500, £5000 .
I don,t want to sound negative and I sorry if it comes across as harsh. If I was a business owner I would have a problem with someone writing off for example 5% of £50,000 balance or even say a £100,000 . Money is money and it pays salaries and bills. If this is down to the accountants are the bookkeepers incorrect entry then we as professionals must find it. Otherwise you could be costing clients money. I would be pretty annoyed if it was my money.
Edited at 22 Jun 2011 09:41 PM GMT
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