Issue with new client and their former accountant

browny76 Registered Posts: 22 New contributor 🐸
I have just signed up a new client on a annual accounts basis, and their yearend is March 2015 so not much time before the accounts have to be submitted to Companies House and Tax paid to HMRC.
The new client spoke of issues with their former accountant but I didn't really know how bad their relationship had become. I received the 2014 trial balance and input the information (which agrees to the 2014 accounts submitted). Having finished the 2015 accounts the bank account balance was out by exactly double the final bank balance figure. The Closing balance of the bank account on the annual accounts and trial balance supplied showed approx. £8100 overdrawn. The bank statements show the client had the exact same figure in the bank account (not overdrawn at all), meaning there is an error of approximately £16200 between the bank balance submitted as opposed to the actual balance on the statements.
The client is arguing with the former accountant over responsibility.
I know the only way to correct this is to redo the prior period accounts and resubmit them, but is there another way?
At this stage I have no idea the best way to proceed. There is no time to redo the accounts for 2014. I have not yet received a penny from the new clients as they pay me a set fee based upon annual accounts being completed. The client has asked me if there is any way to just pass journals to correct the bank balance!
Has anyone else faced this and if so, how did it get resolved.
If there is a way of fixing this that I haven't yet spotted, id be open to suggestions, but I fear I may have to cut my losses.


  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Do not re-do the previous year accounts without getting paid.

    Make a decision for now. A sensible one may be to correct the opening balance by journalling to the DLA. Then if required get agreement to re-do the previous year accounts for a fee. Then adjust the 2015 accounts after that if required.

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