EOFY Adjustment Entry against Bank Accounts

Nat2016
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Nat2016
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EOFY Adjustment Entry against Bank Accounts

Hi,

I'm Using AccountRight Plus and I need some help.

I've received EOFY journal to enter in MYOB from our accountant. Some of the accounts that needed an adjustment were our bank accounts. 

Now there are transactions appearing  in Reconcile Accounts windows that I have nothing to reconcile against to clear.

Can this be right as both those accounts have been reconciled and are up to date? 

 

Thank for your help in advance!

5 REPLIES
Super Partner Murray_McKenzie
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Re: EOFY Adjustment Entry against Bank Accounts

I would go back to the accountant and check two things:

1) were any of the adjustments meant to be reversed the next day and

2) for an explanation of the ones affecting a bank account so you can keep the account reconciled

Murray McKenzie
B.Com
IRD Registered Tax Agent
Boots 'n All Ltd
Super Partner GDay53
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GDay53
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Re: EOFY Adjustment Entry against Bank Accounts

@Nat2016, @Murray_McKenzie

 

This happens all the time, because most accountants do not understand that you can NOT do Journal entries to the control accounts in MYOB without throwing the reconciliations in MYOB out of balance. Control accounts are all bank and credit card accounts, Trade debtors and Trade Creditors, GST Collected and GST Paid and Wage and Salaries accounts.

Murray is correct in that you need to talk to your accountant and make them aware of their mistake. Ask them for the detailed information so you can correct the error the proper way and not by a journal.

If they say the journals in the bank accounts are for unpresented cheques tell them that MYOB handles that in a different way  and that doing a journal will just cause the reconcilliations to be out until either another journal is done to reverse the first journal, or the first one is removed.

Super Partner Kym__Yeoward
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Re: EOFY Adjustment Entry against Bank Accounts

I've sometimes had this, when year-end auditors want journals to the trade debtors and creditors accounts.

To avoid posting to these control accounts, I:

- Create an account Header
- renumber the control accounts
(don't worry, changing this won't affect the linked accounts,
as AccountRight uses a hidden number field, to automatically update the links)

- add a Posting account, for the auditor's adjustments.

 

For example:

1-5000 Trade Debtors (Net)

       1-5005 Trade Debtors control

       1-5010  Debtors - Audit Adjustments

       1-5015  Provision for Doubtful Debts (if any)

 

Kym Yeoward

Darwin (Palmerston) NT

Ultimate Partner Seattle
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Re: EOFY Adjustment Entry against Bank Accounts

@Nat2016 @Kym__Yeoward @GDay53 @Murray_McKenzie @Suja-p

 

Nat,

 

Are you talking about the 2016 Financial Statements/Tax Return?

 

My advice to Business Owners over many years is never sign a Tax Return for lodgement until the Journal Entries from the Tax Accountant have been agreed to MYOB.

 

MYOB is about to launch a new Partner Program.

Some of the Tax Accountants who post to Bank Accounts/Control Accounts may end up with a Silver or Gold Partner standing. The main criteria for gaining Partner Points is the number of online files.

 

Being online will still cause errors if the Tax Accountant does not understand the workings of MYOB.

I wonder how MYOB could implement some Quality Control.

 

Duncan

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Nat2016
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Australia
Nat2016
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Re: EOFY Adjustment Entry against Bank Accounts

@Kym__Yeoward @GDay53 @Murray_McKenzie @Suja-p @Seattle

 

I've discussed this with our accountant and they've comfirmed that there shouldn't be such adjustments to all those bank accounts and trade debtors/creditors. They've fixed it now.

 

Thanks everyone for your helpfull comments!

 

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