Reconciliation - QF Massive minus figures.

Accounting
1

I have been using Quickfile for a number of years.

This year is the first time I have used one of the Quickfile approved accountants.

In the past the accountants have logged in grabbed all the data they need and used bank statements to generate the accounts and submitted them to HMRC

The accountant says our reconciliation figures are very far apart

We have three accounts

Our Main Bank Account (Santander)

  • eBay Sales (Money in)
  • iZettle (Another Payment inbound account)
  • Paypal (Money in)

The Santander Account is not aligning with our true Santander Balance it shows a balance of around £28,414.14

However the balance is actually around £500

Our Paypal l account shows a Balance of -£91,625.33

iZettle - £18,727.37

eBay - £-10,925.94

What usually happens is customers will pay via either Paypal, eBay or iZettle and then i mark the transactions as General Sales and then the balance from say the paypal account is transferred to the main Santander account so we can utilise this as a business.

The transfers between the accounts are tagged as transfers and any fees are also tagged

Where have I gone wrong and how can i correct this quickly? There are alot of transactions and the chosen accountant is say he needs this all to reconciliate before he can do anything!

Your help is much appreciated!"

2

Hello @360

The account balances are made up of the opening balance plus all transactions on the account.

Either the opening balance is incorrect, there are extra transactions, missing transactions or incorrect transactions.

Have the accounts ever matched?

Are the opening balances correct?

Have the accounts ever matched?

Do they balance at any point end of last year, the year before?

3

Hi @QFSteve
Have the accounts ever matched? - Not that i recall is there a way of bringing them in line?

Im guessing the opening balances are incorrect we signed up to QF all when the country required everyone to get ready for MTD

Do they balance at any point end of last year, the year before? - how would i check this.

My assumption is that the accountants have gone in grabbed what they needed and worked on this all offline and made the HMRC submission not come in and then rectified any discrepencies / opening balances.

Thanks for your help.

4

Hello @360

If the opening balance are incorrect it would never balance as I mentioned earlier.

I would reccomend

Entering the correct opening balances
Check the balance a year later to see if it balances

  • If it does check 6 months after and so on

  • If if doesn’t, check 6 months prior, then 1 month etc looking for the discrepency

5

Do you remember entering any OPENING Bank Balances, Outstanding Debtors & Creditors before starting to use the software ?

6

I would suggest that the new Accountant also uses bank statements and access the other data they need and prepare accounts outside of Quickfile.The problem here sounds like previous accountants haven’t reconciled the bank accounts in Quickfile, or used it to prepare the year end accounts. Chances are that the year end routine within Quickfile has not been actioned either and going back in time to correct any entries would be extremely time consuming and costly. In my opinion, a better option would be to prepare accounts as previously done, then close off the year in Quickfile and input the opening balances … in effect, a clean slate for this year. Going forward, all should then be able to be tracked in Quickfile and balanced each month…the software is very capable of handling this.

7

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