Disagreement over account

[atta]

Hi Guys

Help!!!!!!!!!!!!!!!!1


I am quite new in A/C industry. This is my first joband started 2 months ago in very small ltd company. My account said we have loss. But my boss said my account is wrong. My previous a/c girl never used the Sage and just had follwed the book.
After hundred of amendment to right payment to right supplier and from right customer for nearly the whole year back, I come to conclusion we have loss.
The thing is I, myself also inexperience except 6months work experience in small accountancy firm and just await ACCA last 2 optional paper result. So mostly learned from text book.

Is anybody experienced like this conflict with boss not agreeing the true nature of business?

I have checked everthing with great care. Every single invoice to customer and supplier along with bank statement. I even wrote to supplier for agreement balance like auditor do what I learned in P7.

I may have done wrong some classification when I recorded but it may be only come to overhead still in the expenses.

Anybody help me out any other possibility please!

Atta

[Jenni384]

Print out a profit and loss, and get your boss to go through the figures.

Business owners normally have a 'gut feel' for what their numbers should be, and it might be that one of the categories jumps out at him as being wrong, and then you can look at the nominal activity for that code to see what might be causing it.

Rather than go through the bookkeeping again, I think getting your boss to look through the numbers himself to see which ones he disagrees with would be the next place to look.

Even though the bank is reconciled, are there any old transactions 'hanging around' in the bank rec unreconciled that are duplicates or wrong entries that might be distorting the figures?

If he doesn't agree, he could pay for a third opinion from someone who is experienced to rewrite the whole set of books (but the cost of that might definitely push it into a loss!!)

The other option is that the business has indeed made a loss (2 accountants in agreement so far) and he might jsut be in denial. If this is the case, he needs to face up to this, look through the P&L and work out where he can improve on things.

Let us know how you get on.

[atta]

Thanks Jennie. Yes, I look through the Nominal activity as well. And I go through the trial balnace of any suspicious look figure as well. The problem is business overhead like MOT expenses (eg -director car hire and travelling abroad costs are massive overheas sitting in expense. Well may be he has to look again.
Thanks Jennie. You are very helpful.

Atta

[Jenni384]

Thanks Jennie. Yes, I look through the Nominal activity as well. And I go through the trial balnace of any suspicious look figure as well. The problem is business overhead like MOT expenses (eg -director car hire and travelling abroad costs are massive overheas sitting in expense. Well may be he has to look again.
Thanks Jennie. You are very helpful.

Atta
My pleasure Atta. If you can get him to look through the figures and help him understand it, it's then up to him what he does with that information. Best of luck.

[atta]

Hi Jennie

Thanks for the advice. I looked through again the Sale nominal acitivities detail and comapre with sales invoice detail report in Excel. Found the problem. More or less sorted. Still a bit loss. But my boss accepted.

Thanks

Atta

[E Storey]

Hi atta,

I have to say I find myself in almost the exact same situation.

To find yourself in the middle of a company with a "messed-up" set of accounts, a huge overdraft, and an owner convinced they are running a viable and profitable business.

It is hard to try and get a real picture of what is going on. I was told the company was invoicing £10k per month and had overheads of £2k so must clearly be profitable?!?

After 2 months I now know where the rest of the money is going, but delivering that information to the owner is not easy. It's not a technical skill, more an interpersonal one, which I guess only comes with experience.

The good news is you have these forums as a sounding board and, improvements in confidence to handle these situations should happen quite quickly. I know mine has!

[atta]

Hi E Storey

Yes. I agree. My presentation skill is bad. Because this is my first job and my confidence is still building.

Business owner think GP is their profit.

Well, I will have to stand up myself to denial boss.

Thanks for the advice.

Atta