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• # 99775
• Tue 20 May 2014 07:52 PM

Hello,

I need some help with an incorrect z-read:

My client owns a cafe and all his sales come through his till. He has not balanced the till all year (I did tell him he should balance the till daily and explained why). Now, at year end, his sales are overstated. I have matched card payments and cash deposited with the bank statement and this leaves £3,000 in his cash account, which is not correct.

I suppose my question is about original documents  - can I reduce the sales as long as I explain the reason why? For example, my client only opened this year and he remembers putting dummy transactions through the till for training purposes and checking the set up. Obviously the transactions that have gone through before the cafe opened for the first time are practices. However these do not add up to £3000. After that I have no idea what are real sales and what are practices or user error. My client wants me to reduce his cash account to make the cash left in it at year end accurate.

Any suggestions would be greatly appreciated

Clair

• Clair
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• # 99846
• Fri 23 May 2014 06:56 PM

Hi Clair,

Whilst I understand, and sympathise, with your dilemma and your client's, how can you prove or disprove that he didn't in fact pocket the £3000 cash as drawings or fritter it away over the year on small cash expenditure for himself (and therefore still drawings). It is a real dilemma, as a bookkeeper you really want to trust that your clients are doing everything by the book.

I don't know what to advise....what % of the overall annual takings does £3000 represent?

At least you have demonstrated why it is essential to do a Z-read on a daily basis and to record where there are occasions of over-rings.

Good luck.

• Debbie
  www.beckcottage.com
  
  

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• # 99847
• Fri 23 May 2014 07:26 PM

Hi Debbie,

Thank you for your reply. My client has now set up a procedure so his staff count the till at the end of everyday - too late for last year's books but good for next year at least.

I rang the ICB yesterday and they suggested that any transactions that have gone through the till before the cafe opened for the first time and any made outside opening times could be taken as till training. So I'm going to go through the till read, one transaction at a time, and highlight these to my client. I'll explain what I've done and show it on the till read so it's transparent. Then I'll ask my client to write and sign a statement to explain what has happened, which transactions he thinks are training, and how much he is reducing his sales by.

I feel confident that my client is being honest as I've known him and his family a very long time, however I realise that is not proof of a geniune error, because it is cash we are talking about.

Reckon I'm gonna need that luck.....!

Thanks again

Clair

• Clair
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