Preparing final accounts from a spreadsheet!

ademoore

Dear all,

Was wondering your opinions on how clients pass you their accounts.

I always have to go to my clients and tell them their year end is up, so to consider sending me their files for their accounts as soon as they can. Eventually they come in but one has insisted on just emailing me their spreadsheet showing ins and outs, and after requesting further documents, they emailed bank statements.

So it's looking less likely I will actually receive any hard documents to back anything up, and so was just thinking I need to write something at the end to state that they have been prepared going solely from the bank statements and excel spreadsheets - seem reasonable, or would you demand to see more under compliance regulations? I'm thinking it's going to be hard to justify the creditors/debtors in the balance sheet!
:huh:

T.C.

If the client is sure that is the way they want you to do the accounts (and I have some that do), just make sure that you mention what information you were supplied with in the declaration that they sign on the accounts.

reader

ademoore wrote: »

Dear all,

I always have to go to my clients and tell them their year end is up, so to consider sending me their files for their accounts as soon as they can. Eventually they come in but one has insisted on just emailing me their spreadsheet showing ins and outs, and after requesting further documents, they emailed bank statements.

So it's looking less likely I will actually receive any hard documents to back anything up, and so was just thinking I need to write something at the end to state that they have been prepared going solely from the bank statements and excel spreadsheets - seem reasonable, or would you demand to see more under compliance regulations? I'm thinking it's going to be hard to justify the creditors/debtors in the balance sheet!
:huh:

Preparing accounts from a spreadsheet and a few source documents is not unheard of, especially with low risk and very competent clients.

I would initially prepare the accounts on a cash basis, i.e. post bank receipts and bank payments directly to sales and expenses.

Then I would prepare a schedule of receipts and payments two months after the year end and ask the client to check whether or not any items relate to before the year end. If any items do relate to before the year end I would accrue these into the accounts as debtors or creditors.

You may consider not providing an accountants report, especially if the comparatives, p&l and balance sheet, look odd, or you feel that this is a high risk client.

You'll probably need to request certain invoices, e.g. fixed assets, rent and insurance (for prepayments), legal (allowable?), repairs (allowable?), anything large and/or unusual.

Make sure you prepare a letter of representation re: director's record keeping responsibilities and get said letter signed and returned.

AK002

No problems, IMO.

Closing bank statement and any copy invoices for tax sensitive accounts, fixed assets, legals, etc.