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Difference at bank account and the accounting

Hi.

I was going thru my accounting and have a difference on about 13 GBP at the accounting and the bank account. There should be 13GBP at the current account but there isn’t.

How bad is this and can the firm that I apply to manage the yearly accounting adjust this so it gets correct?

Kind Regards

could be a companies house payment, if a company, may be quick double check

Thank you for your answer Faraday. But it isn’t. Its a difference on what’s should be on the bank account and what the accounting application says it should be.

Is this very seriously and bad when I will file for the years accounting for the first time?
Its so small amount of money.
Ive never done this before.

Kind Regards

Hi @Johan

While I believe the answer to your “is this very serious” query, is probably better to be answered by your accountant, I wanted to reply and help find that missing £13 so everything matches.

The first thing to do, is to reconcile your bank account on QuickFile against bank statements: Reconciling your bank

Start at a wide period (e.g. month or quarter), and once you identify a mis-match, start narrowing it down to weeks and days.

Hope this helps!

Hi Mathew.

Thank you for your answer. I will send in for the yearly accounting as its is now to the accountant and se what they say first and se if there is anything I need to do at the moment. Its just a little irritating cause its a so low amount of money that the difference is on.

Kind Regards

Hi again Mathew.

Its debit and credit that there is a difference.

Kind Regards

Reconciling the account will help identify the error. If the balance is incorrect and doesn’t match, it’s likely there’s a transaction (or a few) missing. But matching it up to a bank statement is the only real way to identify this.

Hi Mathem again.

When the difference is so low in amount of money do you know if this really something they will react on when bringing in the accounting for the year?

We are talking about 10GBP.

I mean I would for my self be concerned if we talked about 10.000 GBP.

Kind Regards

Johan

And what if it happens again, and again, or again? At what point and amount do you consider it a problem that needs fixing?

As others have said. Reconcile your QuickFile account to see if there is a transaction missing. That’s really the only answer your going to get.

It may only be £10, but there may be compensating errors which are much larger. For instance, there may be a missing debit of £250 offset by a missing credit of £240. You need to make sure every transaction is accounted for and the only way to do that is to reconcile the bank account I’m afraid.

There are so many posibilities and these will vary according to how you use Quickfile.

One quick check is to see if there is a compensating error in the cheque holding account. When manually tagging an invoice that is paid by cheque it is an easy mistake to show it as paid from the current account. When you import your transactions the banking will register as a transfer from the cheque holding account leaving an outstanding balance there.

Next your best bet is to work back in your bank statements, say at each month end until you find a point where it agrees with QF and then work forward from there. Once you pin down the date where the discrepancy occurs identifying the difference should be trivial.

You really do need to verify the bank account balance as shown in QF at least once a month. At the same time ensure that unbanked cheques add up to the total in the cheque holding account.

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