Reader, it wasn’t.
And perhaps the worst part about it is: he thought it was!
Backstory
In fairness to the previous accountant (PA) there is also in this story a previous, previous accountant (PPA) and neither covered themselves in glory.
The PPA committed the cardinal sin of not bothering to update the bookkeeping file, in this case Xero, to agree to the year-end accounts.
Twice.
Which meant that every balance sheet and every P&L produced in the Xero file was wrong.
Xero is good software but it can’t compensate for bad accounting.
However, the PA didn’t bother to correct the numbers either and therefore didn’t bother to consider whether the numbers in the next financial year contained errors or omissions. Let alone whether they contained consequences!
But, hey-ho, the bookkeeping is complete.
The guys running the business couldn’t get an accurate report from their accounting software.
But, hey-ho, the bookkeeping is complete.
You can’t just press a button and get a good sense of the financial performance of the business over the last few years.
But, hey-ho……..you know the rest.
This is an extreme example of a familiar story
I had thought that in the world of cloud accounting, where the books are accessible 24-7, we had seen the back of the cardinal sin where the accountants fail to ensure that the bookkeeping records agree to the year-end accounts.
I was wrong.
To see two successive accountants not bother was something of a shock but I guess old habits die hard.
So check your books and make sure they agree to the accounts at Companies House. And, if they don’t then do something about it.
Thinking of changing accountant?
Give us a call on 020 7125 0270 or email info@bluedotconsulting.co.uk
Simple.
No forms to complete. You’d rather be in a discussion than a database!
Michael – @bluedotmichael
Related links:
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