Reply to: Is my accountant legit?

[northernladuk]

Have to say I'm with Alan and Simon on this one. Given the average level of accounting questions us professional contractors ask on these boards, I think somone comparing spreadhseet to reality at least once a year is a bit of a necessity.

Amen to that.

[malvolio]

The Balance Sheet is the backbone of the accounting records, and reconciling the bank account AND all the other balance sheet accounts is essential to prepare a set of accounts.

On takeovers from other accountants the most common error we see is that the Director's Account is not reconciled, this stores up problems if the client has not been diligent with their paperwork.

Alan

Have to say I'm with Alan and Simon on this one. Given the average level of accounting questions us professional contractors ask on these boards, I think somone comparing spreadhseet to reality at least once a year is a bit of a necessity.

[Nixon Williams]

Why would you need to reconcile the bank if you're not preparing a balance sheet?

The Balance Sheet is the backbone of the accounting records, and reconciling the bank account AND all the other balance sheet accounts is essential to prepare a set of accounts.

On takeovers from other accountants the most common error we see is that the Director's Account is not reconciled, this stores up problems if the client has not been diligent with their paperwork.

Alan

[Vallah]

If he doesn't want to see bank statements and doesn't have on line access then get rid of him sharpish. It is fundamental that the accountant at least reconciles the bank.

Why would you need to reconcile the bank if you're not preparing a balance sheet?

[prozak]

Not at all. If the "books" look right on the whole and the client confirms that they agree with the bank statements, then there's absolutely no need to actually see the statements. As an accountant, it's not my job to doubt what a client tells me - I'll take things at face value unless I have reason to doubt.

I agree with WHA.

[philip@wellwoodhoyle]

If he doesn't want to see bank statements and doesn't have on line access then get rid of him sharpish. It is fundamental that the accountant at least reconciles the bank.

Not at all. If the "books" look right on the whole and the client confirms that they agree with the bank statements, then there's absolutely no need to actually see the statements. As an accountant, it's not my job to doubt what a client tells me - I'll take things at face value unless I have reason to doubt.

[prozak]

If he doesn't want to see bank statements and doesn't have on line access then get rid of him sharpish. It is fundamental that the accountant at least reconciles the bank.

In your opinion?

That might be a fundamental role for a book keeper but is it really fundamental for the accountant?

[simondolan]

My end of year accounts are due 31st Jan, for my limited company. I am a contractor. It was my first year as a limited

My accountant has not asked for any bank statements, only an expenses, profit/loss sheet. How can I do my accounts without seeing bank statements? Does he just take my word (like self assessment)

Thanks

If he doesn't want to see bank statements and doesn't have on line access then get rid of him sharpish. It is fundamental that the accountant at least reconciles the bank.

[Jeremiah@RHJAccountants]

They want both, annual accounts, and then my personal takings (salary and dividends)

they are regulated by a professional body, I just find it strange they don't check anything, this would surely leave room for some fiddling

@the person who asked about why won't it be legit...I guess because they havent seen any of my accounts so how can they claim that is the amount the business genuienly made

If they want both the annual accounts and personal takings then your accountant should do this for you.

With regards to your accountant and how they prepare your accounts you should really speak to them if you have any concerns. But remember it is your responsibility as director to make sure the annual accounts are correct , so check what your accountant has done and if you are not happy with it talk to them and ask why.

[John Crowe]

I and we at Smith Craven check the workbook and the bank statements togther and make sure that there are no discrepancies between them. so at least we know what is on the bank statements is the same as the workbook.

thats just the way we do it at my firm but other accountants may work differently.

On the proof of income for a loan what does the loan company actually require from you? is it the annual accounts or a letter stating the income that you make as an individual for example what Wages and dividends you take from your company?

Either way your accountant should be able to do both.

Hope that helps

Ps is your accountant regulated by a professional body for example ICAEW ACCA just to name a couple?

They want both, annual accounts, and then my personal takings (salary and dividends)

they are regulated by a professional body, I just find it strange they don't check anything, this would surely leave room for some fiddling

@the person who asked about why won't it be legit...I guess because they havent seen any of my accounts so how can they claim that is the amount the business genuienly made

[Jeremiah@RHJAccountants]

But you are saying you check the workbook, which means you don't always check the bank statements..I just found out that my accountant works from the numbers I enter into the online software, and doesn't require to see my bank statements..

The problem is I need to provide annual summary proof of income for a loan, if he is just going on numbers I enter, it won't be legit will it?

I and we at Smith Craven check the workbook and the bank statements togther and make sure that there are no discrepancies between them. so at least we know what is on the bank statements is the same as the workbook.

thats just the way we do it at my firm but other accountants may work differently.

On the proof of income for a loan what does the loan company actually require from you? is it the annual accounts or a letter stating the income that you make as an individual for example what Wages and dividends you take from your company?

Either way your accountant should be able to do both.

Hope that helps

Ps is your accountant regulated by a professional body for example ICAEW ACCA just to name a couple?

[prozak]

The problem is I need to provide annual summary proof of income for a loan, if he is just going on numbers I enter, it won't be legit will it?

Why would it be less legit?

Does the loan company require an audit of your accountants practices before they will believe what he says?

[Clare@InTouch]

I'm with SJD and Cater Allen and had to scan in the damn things then send them on at EOY....

Sometimes we don't have access, even if you're with Cater Allen. Ask SJD if they are authorised as your agent, and if not ask them to apply (or you can write to Cater Allen and ask them to allocate SJD as your agent, you'll just need their master account number).

[Notascooby]

What Clare said... I'm with SJD and they have read access to my Cater Allen bank account as they do presumably for all their customers they arrange the account for.

I'm with SJD and Cater Allen and had to scan in the damn things then send them on at EOY....

[John Crowe]

We ask for the bank statements if we can't access them online as sometimes a client forgets to put a transaction in from there bank statement on their workbook.

Plus as an accountant one of the fundamentals is making sure what is in the bank at the year end is correct.

we ask for invoices, VAT returns etc as well.

But you are saying you check the workbook, which means you don't always check the bank statements..I just found out that my accountant works from the numbers I enter into the online software, and doesn't require to see my bank statements..

The problem is I need to provide annual summary proof of income for a loan, if he is just going on numbers I enter, it won't be legit will it?