Chart of Accounts - Bank Balances

Hi

doing the end of year accounts with the accountant and we have an issue

in nominal accounts we have set the range to 01/09/2014 to 31/08/2015 and the bank balance shown at 1200 is only 4,526.65 it should show 42,692.65

if i set the date hower to 01/01/1900 then i get the right figures

i have processed the year end but still not made difference. i can work out whats going wrong.

Update: i have since worked out if i adjust the date to a date before 28/08/2014 i get the correct balance if i set it for any date between 28-31/08/2015 then i get the wrong amounts

I was about to suggest going back in smaller chunks until you find the dates where it runs out. What date is on your opening balances?

my opening balance is from 27/08/2014 i then have a few transactions before the end of the month i have check and the balance is as it shows on my bank statement

Don’t suppose your opening balance would happen to be the same as the difference between the 2 figures in your OP?

not quite the difference is £38,166 opening balance was £36,836.55

If you’re searching in the nominal ledger this will give you the NET value of the transactions for the selected date range, not the balance of the account. Setting the from date way back (as you did) should give you an effective balance of the account.

Sorry i don’t under stand that neither dose the accountant.

I am new to this so forgive my lack of knowledge. ill talk you through the process this morning

I have a meeting with the accountant introduce him to your software and show him our 2014-2015 accounts. he asks me to produce the trial balance which i did as per the instructions on the knowledge base. so the balance shows up correctly on that exported sheet. but on the computer it don’t, but when you change the date range it changes to the correct balance. surely what is sown on the screen and what is in the export should match ?

if you say its the Net figure what is it the net of? and why would it change to the figure i am looking for if i change the date range

CORRECTION: the amount on the print out is not showing the correct balance as previously stated its showing the same balance as on the chart of accounts

So where exactly is it not showing the correct balance? Can you provide a screenshot or let me know the exact report you are looking at?

So this image shows the Chart of accounts set to our accounting year
as you see the current account balance is showing £4526.65 now my account believes this should show he correct balance of £42692.65 this goes for the other accounts are not showing their correct balances

now in this one it shows the date adjusted by 4days and shows what we consider the correct balance now this is also the case with all the other accounts show their correct balances when i have this date range selected

we have submitted the end of year.

The Chart of Accounts report doesn’t show balances, it shows the sum of transactions over a given period.

When you change the start date from 01/09/2014 to 27/08/2014 it’s then picking up the opening balance you have set on that bank account.

This would then explain the difference.

so its like a difference between the starting balance and all of the transactions that have come through the account ?

ill pass that on i may be back with another query soon

Let’s say you set the date range for last month October 1st to October 31st, what you will get in the COA is the sum of all transactions that went through the bank account between those dates.

So in theory if you had 2 transactions, one “money in” for £3,000 and one “money out” for £1,000 it would show a NET of £2,000 on the COA.

Now if you change the dates to cover a very large period that encompasses every entry on the bank you effectively have a bank balance.

okay so i understand how it works. but for it to work over a log period of time you would have to start your balance at 0 would you not

When you enter an opening balance for a bank it actually creates a ledger entry, you can see it for yourself by drilling down to the current account from the COA. So as long as the date range picks up that opening balance it’s fine.

Okay i have done some sorting so it shows for now

so when it comes to next year its not going to show the correct balance and he is adamant that thats what it should show

He said that surely when you run your end of ear it should bring the balance forward from the last year he said he’s never know of a software that shows it like you have explained it.

i am now caught between a rock and a hard place as i am using this great service but i am getting it in the neck because the accountant wont even look at the accounts until they are some were near the correct data.

I have since had a brain wave if at the end of the year i just take the balance then add the amount showing on the COA then it should add up to the balance on the account should it not ?

I have spotted the same thing and struggling as to how I would produce an accurate trial balance in the second year because the chart of accounts does not incorporate the brought forward position at the start of the period you require your trial balance for.

all other accounts systems I have seen allow you to produce either a transactional trial balance which is just the movement for the year or a full trial balance incorporating the opening position of the balance sheet codes. The later of the 2 is the one that all accountants require to produce end of year accounts.

You shouldn’t have to put a date range in that covers every entry in the system. The P&L codes would never be correct.

Just to reiterate The Chart of Accounts does not show balances. It shows activity over a defined period.

If you want to show balances then you’d need to download a trial balance or run a balance sheet report. When you run your year-end it moves the NET of the P&L activity for the year onto the balance sheet, it does not touch bank balances in any way.

Where is the trial balance download then?

Please see this topic:
http://community.quickfile.co.uk/t/how-do-i-get-to-trial-balance/860