Help us improve

Currently if an entry is made with a date prior to your current year Kashflow will just include the entry when reporting the balance sheet but adjust the brought forward figures.

If an entry is made out of date it would be nice to have it appear in "Adjustment to previous year" account on the balance sheet and not just reflected in the bfwd.

This feature would be great if it was also drillable.

Thank you

Here's a cut and paste of my communication with support for clarity...

I think you are missing my point. Please read carefully the scenario I have given below. I know the balance sheet is everything including brought forward information. But, Once a year is closed (Year end process) the figures are transferred to the balance sheet and there is a brought forward profits/loss account or as in Limited companies a retained earnings account, this is what is reported to HMRC and cannot be changed after without resubmitting new accounts. Retained earnings or profit/loss brought forward is years on years acumination of profits/losses. If a figure is entered to the P&L with a prior date to the current year, this figure is the one that changes and it shouldn’t change because the figures that were there before the wrong date entry was made, were the figures that were reported to HMRC. The balance sheet is correct, yes, but the brought forward figure is wrong in one of the years and every year after up to the current year. If you are not an accountant, perhaps it would help to speak to someone who has practical accountancy experience. That’s not a dig, but there is a difference between an expert at accountancy software and the needs and understanding of an accountant. Please forgive me if that offends you, it is not intended to. I need someone to see that the actual wrongly dated entry (prior year) is going to cause an issue when tying up the brought forward figures from last year.

Quick scenario:

Year end 30/4/14

P&L

Sales 100
Costs of sales 50
Expenditure 21
Profit 29

Balance Sheet

Assets
Bank 29

Liabilities
0

Funded by

Brought forward profit 0

Current year profit 29

Balance zero

Above, the balance sheet balances at zero. The year end process is performed and you have this as your starting point:

Year start 01/05/14

P&L

Sales 0
Costs of sales 0
Expenditure 0
Profit 0

Balance Sheet

Assets
Bank 29

Liabilities 0

Funded by

Brought forward profit 29

Balance zero

If I were to add an entry with a date before 01/05/14, lets say a sales invoice for £20, Kashflow will change the brought forward figure for the start of this year when asking it to give a balance sheet to this date, which is wrong as the figure reported to HMRC was £29. This entry would cause the below:

Year start 01/05/14

P&L

Sales 0
Costs of sales 0
Expenditure 0
Profit 0

Balance Sheet

Assets
Bank 29
Debtors 20

Liabilities 0

Funded by

Brought forward profit 49

Balance zero

As you can see, the reported brought forward before the mistake entry was £29, but the brought forward after the mistake dated entry is £49. This is what needs reporting in a separate account on the balance sheet. Like this:

P&L

Sales 0
Costs of sales 0
Expenditure 0
Profit 0

Balance Sheet

Assets
Bank 29
Debtors 20

Liabilities 0

Funded by

Brought forward profit 29
Prior year adjustment 20

Balance zero