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Problems with balances

LovyLovy Member Posts: 6

Hi there....I have a family business which was initial run by an employee. Now that I completed my studies, I took control of the business. It is not that I see lots of entries which are confusing and also none of the closing balances correspond to the statement I have, for example bank balance does not correspond to my bank statement, balance for debtors held manually do not correspond to that of the system and many more.

I would like to know how can I correct all these. I have to file the statements by next week and I cannot locate where the discrepancies are coming due to the confusing entries and also because no reconciliation was done since 2014.

Much appreciated if you could help me with this.

Thanking you for your cooperation and support and awaiting your prompt feedback.

Regards
Lovy

in Accounting Technical Support

Comments

  • [Deleted User][Deleted User] Posts: 0

    Did you have your accountant look at it yet? I cleaned my stuff up with friend who does bookkeeping before I put it in Wave, but up until then I did the same kinda thing. I'm lucky that they helped me, but might be worth asking someone who knkows what they're doing or seeing an accountant for some help. I just kept track of what I thought I needed, and when it came down to it, didn't have very organzied finances.

    Took a while but definitely worth it to go through the past years of paper invoices and stuff to get on track. I didn't really keep exact track, and turned out that I had missed when people didn't pay or pay on time and actually lost out on some $$$ in the end. Not gonna let it happen again! :wink:

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @Lovy.

    To mirror what @katiekats said, the smoothest way to do this is going to get in touch with a bookkeeper. They'll be able to guide you through this entire process best and set you on a path to make sure this doesn't happen again.

    Otherwise, you'll have to go through your entire transaction history and match entries on Wave to the corresponding bank statement entry until your numbers on Wave match up with the numbers for your bank accounts and the balance of your clients and vendors.

  • LovyLovy Member Posts: 6

    Hi Ladies

    Thanks for your help. But instead of matching up, which would cost lots of time (transactions since 2014 and I have only 2 weeks to finalise accounts) could not I do some journal entries to manually reconcile the figures in the system to those as per statements held by me?

    The only problem I may have is what I do the extraction for some specific balance I believe.

    Much appreciated to advise.

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @Lovy.

    You could use journal transactions to force your accounts into the right numbers, but I can't recommend doing it. It would make it so the transactions for the affected accounts won't match what happened in reality. If you end up getting audited for this business, these journal transactions will stand out and might cause you problems in the long run. You would also have to make sure those numbers are accurate as to your taxes.

  • LovyLovy Member Posts: 6

    Hi @Alexia

    I appreciate your advice, however the concerned balances involves debtors and bank balances. No P&L item affected and thus no tax issues. Well I hope :smile:

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