Prior to submitting the company’s bookkeeping to us please ensure that the following checks are made. This will help to ensure that there are no delays in preparing your accounts and limit the amount of time you need to spend answering our questions.
1. Bank, credit card and PayPal accounts – The balance in bookkeeping must agree to that on the actual bank statement (or a reconciliation provided). If this is not the case then we can fix this for you at our normal hourly bookkeeping rate.
2. Petty cash – Bookkeeping balance must agree to actual cash in hand at the end of the accounting period.
3. Transaction analysis – You should review all the transactions to ensure that they are accurately recorded and analysed under the heading that best describes the activity. There should be no transactions analysed to suspense or other.
4. Debtors – All the income in the bank should be matched to the sales invoice it related to. The amounts still unpaid are the debtors. Please identify when the amount was received if after the year end. If invoices were considered bad debts (will not be collected) at the end of the accounting period please let us know and we will make the necessary adjustments for you.
5. Creditors – The outgoing payments should be matched to purchase invoices, the amounts still due to be paid by the company will be the creditors (unpaid purchases) list at the end of the accounting period. If you are using our bookkeeping spreadsheet please provide a list of the creditors at the end of the accounting period.
6. Directors’ accounts – The bookkeeping needs to show the accurate amounts owed to or from directors. Please provide a breakdown of the transactions splitting out business purchases/dividend/bonus and loan repayments.
7. Payroll – Your payroll records need to agree to your bookkeeping. If we do not prepare your payroll we will need access to the records for the accounting period.
8. VAT – The VAT return figures submitted to HMRC should agree to your balance sheet. If Green Accountancy prepares your VAT returns no action is needed as we make this check as part of this work.
9. Work in progress/ work invoiced in advanced – Please let us know if any work was done before the year end was invoiced afterwards; or if any work done after the year end was invoiced in the year. We can then make the necessary adjustments in the accounts.
10. Stock – If you hold stock please provide details of the amounts held at the end of the accounting period. Stock should be valued at the lower of cost and what it could now be sold for (normally cost).
11. Fixed assets – The company should hold an up to date fixed asset register, if you are unsure about this please let us know and we can provide details based on the last periods accounts. You should review each asset to ensure that these were still in use by the company at the end of the accounting period. If these are no longer in use please let us know what has happened to the asset and we will make the necessary adjustment in the accounts.
12. Dividends – Dividends in the bookkeeping needs to agrees to dividend certificates and minutes.
13. Related party accounts – Where the company has business transactions with related companies please ensure they have been reconciled (agreed in both sets of accounts) for each intercompany account.
If you are unsure how to make any of these checks please book an online appointment with a member of our team.