CONSULTANCY / SECOND OPINION ON ACCOUNTING CORRECTIONS IN QBO

QUICK CONSULTANCY / SECOND OPINION ON QBO ACCOUNTS CORRECTIONS WITHIN 48 HOURS I have issues which my bookkeeper and I have identified as needing to be corrected in QBO but I would like a second option in regards to how to deal with the situation. It's apparent that the previous accountants who processed and submitted my annual returns for YE2022 made multiple errors to 2 directors loan accounts and 2 dividends accounts. We have identified all the errors as per the attached spreadsheet, see ‘Director Loan Ledger’ page and ‘Javed Working D Day’ and ‘Javed working Sarah’ My bookkeeper suggests the following in regards to the YE2022 figures….. COPY ---------------------------------------------------------------------------------------------------------------------------------------------------------------- ‘First of all I wish to correct that balance sheet showed director loan amount of £244,412.55 (QB balance on the basis accounts were prepared) instead of £242,875 as on 31.03.2022. The balance should be £232,643.19 (234,783.27 - 2,140.08) There is difference of £11,769.36 and we need to make adjustment of this amount in our books for FY 2022. The adjustment of director loan account of £2140.08 in Sarah and £9,629.28 in D Day account (Total £11,769.36) would be required. Below would be the journal entry required to be passed in books of accounts and we need to provide re-stated balance in HMRC and Company house … seem to be small adjustment.’ ‘As on 31.03.2022 Debit Credit Retained Earnings 11,769.36 Directors Loan Account - D Day 9,629.28 Directors Loan S Howarth 2,140.08’ END COPY ------------------------------------------------------------------------------------------------------------------------------------------------------- But I’m worried these adjustments may trigger an HMRC investigation, so I suggested that I personally invoice the company for any discrepancy and include the invoice within the YE2023 accounts which have to be submitted by the end of this week. What are your thoughts regarding this and other options available to me? In addition, there is a credit to D Day directors loan account on line 59 for £2258 which I can find no reason for. Should this be also be removed from calculations? What puzzles me is how did the previous accountants to get the YE2022 figures already submitted to balance if they did a bank reconciliation. What are your thoughts on this? Ultimately the figures for YE2023 not yet submitted need to balance with bank figures, debtors and creditors. So is there any other advice you can pass on to my bookkeeper and I to achieve this. Thank you for your interest.