Tallying accounts

[kali]

I received the draft accounts for my company through from my accountant at the weekend - I was trying to tally them up with my own spreadsheet last night. It was doing my head in - the best I got was within a few pounds. I guess thats why I pay an accoutant though.

Does the panel think getting close but not spot on is good enough to accept the accounts and assume the accountant knows far better than me?

[oracleslave]

Does the panel think getting close but not spot on is good enough to accept the accounts and assume the accountant knows far better than me?

I do. But then I am lazy and have no interest in accounting.

[Bluebird]

depends on whether those few pounds end up in his or your pocket.

[malvolio]

I received the draft accounts for my company through from my accountant at the weekend - I was trying to tally them up with my own spreadsheet last night. It was doing my head in - the best I got was within a few pounds. I guess thats why I pay an accoutant though.

Does the panel think getting close but not spot on is good enough to accept the accounts and assume the accountant knows far better than me?

Correct- that's what you pay your accountant for, so why do it twice?

Anyway, as long as you can agree income exactly and can reconcile expenditure on obvious things like salary, expenses and dividends, all of which ought to be fairly easily idenitifiable, then you probably don't have a problem. You're right to check as best as you can though; ultimately it's your responsibility as Director of the Company.

[Lewis]

I received the draft accounts for my company through from my accountant at the weekend - I was trying to tally them up with my own spreadsheet last night. It was doing my head in - the best I got was within a few pounds. I guess thats why I pay an accoutant though.

Does the panel think getting close but not spot on is good enough to accept the accounts and assume the accountant knows far better than me?

I keep a detailed spreadsheet of everything. It matches my bank balance to the penny. My draft accounts didn't match my spreadsheet. Detailed analysis showed a combination of me putting a figure in the wrong column and my accountants making a minor error as well. After a couple of quick phone calls, my accounts now match my spreadsheet to the penny. If HMRC come knocking a 5 years when maybe I have different accountants or whatever I can clearly show how all the account figures were derived. I would not be happy having it any other way. Ultimately you are responsible for the accounts not your accountant and in my opinion they should be absolutely correct.

[Hex]

If you're just a few pounds out then it could be due to rounding in the Accountant's software package.

My accountant uses a software package which rounds figures to the nearest pound and then stores them rounded. So next year you find you've carried forward a rounded amount and then further rounding is carried out. Because of this, the accounts compound rouding errors.

There's nothing I can do about this (other than change accountant) so I keep a reconciliation spreadsheet where I carry over the rounding error from one year to the next. This allows me to reconcile the accountant's figures to the penny.

[moorfield]

Agree with Lewis. I made sure my own records matched the year end accounts to the penny (or as close as factoring in the rounding). I've since started using an old copy of Microsoft Money to start doing the books myself and after much tinkering now have quite a good system setup plus several useful reports which I could never reliably get out of the accountant. So good in fact I only really keep the accountants on now for the various HMRC returns that need doing, and once I've got my head round all that I may ditch them altogether and just use an accountant for all the year end stuff.

[slackbloke]

I received the draft accounts for my company through from my accountant at the weekend - I was trying to tally them up with my own spreadsheet last night. It was doing my head in - the best I got was within a few pounds. I guess thats why I pay an accoutant though.

Does the panel think getting close but not spot on is good enough to accept the accounts and assume the accountant knows far better than me?

That is assumption too far..........
If your accountant is like mine, they make plenty of mistakes, but also do things I haven't covered or understood. I just got back and fourth until we both agree.
I have to tally it for a) my own peace of mind and b) it is my liability.

[kali]

That is assumption too far..........
If your accountant is like mine, they make plenty of mistakes, but also do things I haven't covered or understood. I just got back and fourth until we both agree.
I have to tally it for a) my own peace of mind and b) it is my liability.

Yep, thats kinda my thinking too - thankyou all for the replies, I think another evening juggling figures is looming *sigh*

[Badger]

I've started to use Microsoft Office Accounting 8 (as its free), thought i'd give it a few months of use see of I like it. Anyone else giving it a go?