Originally posted by malvolio
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HMRC Penalties
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Originally posted by malvolio View PostSpot the guy that's never worked in accountancy...
A £50 discrepancy in a £1m ledger could be two not-quite matching £900k discrepancies. You have to track them down and reconcile (or explain) to the penny. I've spent a few days doing that job in the past. Also a key audit point in any company's books is that the cash ledger (or net balance of available cash) will match precisely to the bank account at the same point in time. The FD will be very nervous if they don't.
All the monies going through the books must be auditable and accountable, that basic principles. How you fund it is another question of course.
As to how it interests HMRC, if you misrepresent your cash position they will assume you may be concealing profits and hence evading tax, or you may be laundering monies on behalf of a third party. Neither option is desirable!
I guess standards are different these days...Comment
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Originally posted by BrilloPad View PostI worked for a norwegian computing company in 1983 as a holiday job in accounts firm - the previous year their bank reconciliation was out by £800. I found half of it (by luck).Comment
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Originally posted by Turion View Post...And trousered the remaining £400Eat Right, Exercise, Die Anyway.Comment
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Originally posted by WHA View PostApparently it was something similar that almost brought Airtours down. I heard they did their accounts on a spreadsheet and never bothered reconciling the bank account, hence the massive black hole!Comment
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Originally posted by miffy View PostWell if he did his ex has got £200 of it in her trousers nowComment
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