Issues Identified: No in-house accounting specialism
Reporting Method: Current year actuals versus last year actuals
Our client is an established business who has their own bookkeeper and uses an industry-specific accounting system.
During year-end work, it became evident that the bookkeeper had made a few errors with postings and critical reconciliations, meaning that the client thought the year was better than it had been. Given the volatility in the construction sector, not having significant figures to make decisions was having an impact on the operational side of the business.
Due to the lack of internal accounting specialism within the business, Sheards were engaged as a critical partner to prepare six-monthly accounts.
Any miss postings and errors are identified and corrected to ensure that the client has a handle on the results of the year to date. The review forces the management team to report on the current progress of contracts to ensure that they are making the returns expected.
We also identified that the client was struggling with cash flow, and so we suggested a change in VAT reporting timeframes so that they had a more regular income.
Our client says
“Sheards have been our accountants for many years, but following a change in our accounting software we were made aware of accounting errors affecting the year. Of course, Sheards worked closely with our bookkeeper to iron out the problems, but when they suggested a more formal six-monthly reporting structure, we knew it just made sense. Construction can be very volatile, so waiting for reports on results for over a year was just too long, and we were grateful that they could use their expertise to present information in a familiar and useful format. Having this information has also been instrumental in us being able to win further contracts as we had up-to-date figures to use in our Pre-Qualification Questionnaires and contract bids.”