Case Study Number One

D & K Accounting Services have been asked to visit a potential client as he thinks he is paying too much for his bookkeeping services.

This is what we found:

A Business had a bookkeeper who advised the client that she fully knew all aspects of Sage Line 50. She came into the client's premises and collected all the paperwork and a back up of the Sage data and went home.

  • The bookkeeper did not have a full knowledge of Sage, she had been used to manual record keeping and spent her time at home chasing up missed purchase invoices - part of the role of the administrator on site at the business.
  • The bookkeeper did not enter or balance and reconcile the bank accounts and charges etc.
  • The bookkeeper did not understand the numerous company credit cards and entered the expenditure as income.
  • The bookkeeper did not understand the basis of the nominal ledger and therefore entered the information in incorrect areas of the chart of accounts and mis-represented the profit and loss account and the balance sheet.
  • The bookkeeper did not understand how to correctly assign the customer and supplier payments within the bank accounts, giving totally incorrect debtors and creditors figures.
  • The bookkeeper did not know how to correct or delete a transaction entered erroneously and merely entered it again correctly thereby throwing out the bank figure and making reconciliation difficult.
  • The bookkeeper did not know how to assign cheques paid out leaving a huge amount of information not recorded.
  • The bookkeeper was not aware that a year end had to be produced and the business had only a few months before the filing deadline.

The Result:

The client was not aware that anything was amiss within his accounts, he believed the bookkeeper was acting in his best interests and was paying her a very good sum for her supposed time. D & K Accounting Services went through all the problematic aspects with the client, fully corrected all the errors found, reconciled and balanced the banks, credit cards and debtors and creditors ledgers and liaised with the client's accountant and enabled him to produce a true and valid set of accounts, filed on time with no fines.

SageProfessional Advisor

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