Too often we see examples of companies where the published accounts at Companies House bear little resemblance to the numbers in the client’s accounting software.
They should be the same.
How could they be different?
And what is the impact?
A company, it could be yours, does its own accounting in its accounting software and everything is seemingly working OK.
The company goes past its year-end and, in a cloud accounting world, the company’s accountant logs in to the software to prepare the annual accounts.
The accountant, in their accounts preparation software, makes some adjustments – typically to do with bad debts, accruals, corporation tax, dividends etc. – and produces the accounts to be submitted to Companies House.
So far, so good, but the accountant should then make very sure that all of the adjustments are properly reflected in the client’s own software. If not, the client’s own bookkeeping is simply wrong.
Management accounts will be wrong, possibly VAT returns will be wrong and if this goes on for a couple of years then the discrepancies just get bigger.
If your management accounts are wrong then, to put it bluntly, you don’t know how your business is performing.
HMRC turn up for an inspection of the adequacy of accounting records (something they’ll be doing more of with extra resources and AI) and find that the accounts they have received with the corporation tax return are different from the records they’re looking at and it’s not a good start to their inspection!
Couldn’t happen to you, could it?
It is one of the first things we check when companies change to Blue Dot Consulting for their accounting work. Worryingly, more often than not there is a difference between the company’s books and the accounts at Companies House.
As more and more businesses adopt cloud accounting solutions we should see this problem less often.
But you should insist that your accountant either:
Get your accountant to take responsibility for ensuring that your books agree to your published accounts. After all, it should be part of the service they have asked you to pay for.
It seems this is not always happening. Go and check yours now!
Michael
Related links:
We don’t believe in forms, we believe in talking to people, finding out your needs and tailor-making a solution just for you.
Give us a ring on 020 7125 0270 or email us at info@bluedotconsulting.co.uk
“Michael and the Blue Dot team have been an essential part of our journey from startup through to being an established company, and we look forward to continuing working together long into the future. They have always been on hand to offer support and sound advice whenever it is needed.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
“Blue Dot Consulting went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.
Their deep understanding of our unique needs and challenges was evident from the outset. They provided unwavering support to our team, ensuring they felt confident and well-prepared for the changes ahead.”
“Thank you again for your help and training so far – it’s honestly been invaluable.”
“I’m no expert but it has been transformative the help and advice I get from Michael and his team.
Michael was fantastic. He quizzed me on how my business worked financially and was super patient with me. Explaining everything in a non-accountancy manner. He then showed me how to utilise all the less obvious tools in the program, which he continues to do, so that I can see immediately what monies held belonged to my company and what is held for clients. I now do my own VAT returns and payroll because of his help and continued support.”
“I really enjoy working with Blue Dot Consulting — they’ve helped me take control of our financial situation in a practical, no-nonsense way.
They take a common-sense approach and, most importantly, they get things done. For example, we now have weekly planning and forecasting calls, along with monthly cash flow reviews using simple, easy-to-understand spreadsheets.
Their support has made a huge difference in how we manage and plan for the future.”
“As the business owner, it can get lonely making all the decisions. I feel I have a ‘silent FD’ that I can call, challenge and that any idea is OK to discuss, and to arrive at a sensible way forward.”
“Having someone in the room that is happy to (in a structured way) challenge the norm and not simply accept that, because things look good, we should stop looking to improve.”
“Blue Dot are uncompromisingly systematic and thorough so that you can get on with running your business.”
“Outstanding service and support. They get things done, just what you need. Recommended.”
“It was the genuine level of care and interest in what we do as a business.
The regular check-ins and the effort to ensure the systems they’ve implemented are working for everyone stood out.
It felt like more than just a service, it was a partnership.”
“I’ve been delighted with both the service and expert advice I’ve received from Michael and his team. They take the weight off my shoulders when it comes to my business’s financial requirements, allowing me to focus on building and managing the company.”
“We are a small organisation with no in-house financial expertise, so it’s a huge weight off my mind knowing that I can rely on Michael and his team to take care of everything.”
“I can wholeheartedly and highly recommend Michael and his team at Blue Dot as an exceptional accounting firm. They put my mind at rest knowing I am in excellent hands.”
“Michael and the team are my saviours. Always helpful, approachable and reliable. They show an interest in my business and give excellent advice and recommendations. Above all, they are highly likeable and fun to work with.”
“They went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.”
“You guys are brilliant. It’s been a challenging few weeks facing up to the issues but I do feel positive towards them now and I feel a weight has lifted from my shoulders. I am honestly so thankful!”
“I was a little apprehensive about working with a new accountant but I didn’t need to worry – I have found their approach to be friendly, genuine and they go above & beyond to help.”
“Michael’s straightforward, practical and tailor-made approach was perfect for me and our business.”
“Blue Dot have been our accountants and bookkeepers since the very beginning of our business, and have been nothing short of outstanding throughout.”
