|
I have a newish client whose Sage records are completely inaccurate. The system appears not to have been updated by the previous accountant or bookkeeper for a number of years and there are a large number of transactions sat there which are very old. For example:
1) large balances (both credit and debit) on supplier accounts going back in some cases to 2008/09
2) large credit balances on customers accounts, which show as payments on account made by the customers, where invoices were not raised against the same accounts. The invoices might have been entered elsewhere but I haven't found them yet.
3)bank accounts which do not reflect at all the monies in them (for example a Streamline account with a negative balance where the payments out have not been balanced by any monies coming in).
Consequently when you run a draft profit and loss and balance sheet the figures are completely wrong.
My plan for the new financial year (1 April thank goodness) is to start afresh with a blank canvas and only enter opening balances that I know to be correct. My client tells me (in the light of my astonishment) that he intends to change accountants at the end of this financial year to someone a bit more on the ball.
In the meantime, how do I attempt to adjust for all of these errors? For example how do I adjust for a customer credit balance? I can't put in an invoice because this will affect this year's sales figures, but I can't put through a journal because the customer account doesn't have a nominal code?
Or should I just forget about it and run a series of reports at the end of this financial year for the accountant to reflect the real situation rather than a draft P and L and Balance sheet.
I have worked with this client now for a few months and it is worth persisting because I can see light at the end of the tunnel.
Thoughts please???
Many thanks
|
