Cash in account does not = retained profit figure

**SueEllen** · 3 August 2011, 21:17

Expenses not accounted for?

Corporation tax for the past year taken out?

It's actually really hard to answer without seeing your books.

I do my own bookkeeping so if my account balance on the books doesn't match my bank account then it's my fault.

**Greg@CapitalCity** · 3 August 2011, 21:22

Originally posted by Jonny1974 View Post

However, as the subject field surmises my account balance is a lot lower than the figure supplied to me today.Can anyone explain this?

Ask for a breakdown of your debtors. An outstanding Directors Loan, or an unpaid invoice(s), would help explain this.

**Jonny1974** · 3 August 2011, 21:28

We would be talking a lot of lost expenses.

But surely whatever it would be the books would have to balance at the end of the tax year? In the past it would be a case of bottom line = money in account, they had to tally...and I left those accountants because they were really bad!

I think they have made a mistake with the profit carried into this year but I will find out tomorrow.

**Jonny1974** · 3 August 2011, 21:32

All invoices paid and no loans on account.

The only thing I can think of is unrecorded dividends, but we're not talking £100's here so it looks like a big accounting error. Frustrating as i'm good at what I do but not accountancy! That's what I pay experts for!

**northernladuk** · 3 August 2011, 21:49

SJD do a pretty terrific spreadsheet that allows you to put everything in and it does the calcs and tracking on the summary page so you can track every penny by every month.

Problem is some fields are locked if you are not a customer. Worth a look though.

**Wanderer** · 3 August 2011, 22:18

Originally posted by Jonny1974 View Post

Can anyone explain this?

I can see how you are frustrated, you obviously want to take the money but you don't want to end up with accounts in a mess because you've taken too much or a dividend when there are no profits.

This is one for your accountant to explain, I'm afraid. We can't figure it out without looking at your accounts and bank statements ourselves.

As NLUK says, SJD do a nice spreadsheet which matches up with your bank account balance at the end of each month so you know that no mistakes have been made. But then, that's what you are paying your accountant for...

**SueEllen** · 4 August 2011, 00:28

Originally posted by Wanderer View Post

As NLUK says, SJD do a nice spreadsheet which matches up with your bank account balance at the end of each month so you know that no mistakes have been made. But then, that's what you are paying your accountant for...

Ask the accountant questions.

If you are not happy with the reply change accountants asap.

Also do your own bookkeeping even if you are paying the accountant to do it for you as well. That way you can keep an eye on the figures they produce for you.

**Jonny1974** · 4 August 2011, 05:31

Thank you for all of your replies.

I'll see what the accountants say today- I think I had him rattled when I told him they do not match.

I am not being stupid though - they should equal each other?

I was with SJD but the spreadsheet although good was only as good as the effort put into it!! I changed accountants because I needed a more hands on service, and have been happy...until now!

**BlasterBates** · 4 August 2011, 06:16

Originally posted by Jonny1974 View Post

Thank you for all of your replies.

I'll see what the accountants say today- I think I had him rattled when I told him they do not match.

I am not being stupid though - they should equal each other?

I was with SJD but the spreadsheet although good was only as good as the effort put into it!! I changed accountants because I needed a more hands on service, and have been happy...until now!

No retained profits does not equal money in the bank, it is equal to your assets minus any capital you invested in your company.

What assets do you have? this includes outstanding invoices, any equipment your business has etc.

Check your balance sheet.

If you still don't see it, just get your accountant to check, it is pretty basic. He's not going to leave a balance sheet unbalanced.

Cash in account does not = retained profit figure