I have been doing the Church Book Keeping for a growing Church. After taking care to record and log all Invoices and reciepts for the past two years, I have balanced the books, against the Bank Statements and all has been fine. This tax year I have been handed a large box by the Pastor before he went on holiday, and it the box was loads of unrecorded receipts dating back to 2005, how do I record these.
It seems that the Pastor had another account of which to draw from.
How do I sort this one, it's taken me all day to sort out all the old Invoices. Some have been payed by Cheque, but there are no Cheque stubs? Help!
I see that nobody has replied to this, which I guess kinda tells me, things aren't very good. I am not a qualified accountant, and did the books when the church was small, but it's getting too big for me to handle, so I will tell him to give the books to a qualified accountant. However if you suggest I speak to the Inland Revenue, because I honestly do not want to be involved in anything that's dogy, that may be the best thing.
Please advice though,
I ran my own business for six years, and kept up to date with everything, my book keeping was always okay, and I could trace everything. I did a sage course and worked in pay roll, so I am no stranger to accounts, and also did a college course, I have a diploma in business, but this baby is beyond me.
This one is not really in my experience, so I would hope you (or someone else) can confirm it before taking it for granted.
I am expecting you would simply need to bring these transactions into the accounts, and reconcile this other account.
As it is in previous years, you may need to prepare some of this separately as the previous years might have been closed in your software. I expect you will need to disclose this to HMRC, and provide them with amended accounts for the past periods.
I am assuming the church is a registered charity or not-for-profit organisation? I wouldn't expect there was any intent to be dodgy, just a mistake and a little negligence which I think if you speak with HMRC it can be sorted without it becoming more of a problem than it needs to be.
Great to hear from others on their thoughts. Please do let me know how you get on with this too.
Given that the Church will be a non-profit organisation there will be no tax implication of any adjustments that need to be made. It would be wise to reconcile the omitted account and adjust the previous years accounts as appropriate. If the Church was a registered Charity you will need to resubmit the amended accounts to the charties commission.
If the pastor was drawing money from the omitted account you will need to ensure that PAYE has been accounted for on these payments. Interest may also be charged on any outstanding amounts.
On the face of it I agree with John that nothing dodgy appears to have gone on. If after your work you uncover something that falls within the money laundering regulations you may need to submit a report to HMRC. Not likely but worth keeping in mind!
__________________
"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
Thanks for helping me with this. My Cousin who has more knowledge in accounts is going to help me with the books tomorrow. The Church isn't registered yet as a Charity, but it is in the process. I will reconcile the omitted account and adjust the figures, but I think I shall do this on a seperate sheet with a letter explaining that I did not get the Invoices until 2008. The Pastor of the Church does not draw a wage out of this which is a lot easier, so it's not too bad. I will let you know how I get on. But I have decided to make this my last year of doing the books, as the Church is growing, and after Charity status, I think the books will be better in the hands of an Accountant.
