TaxCalc will show any errors that will prevent successful submission of the accounts to Companies House on the Check and Finish page within Accounts Production. The error messages that are displayed appear based on postings made, which should match between the current and comparative accounting period. If you receive a Check and Finish warning message in Accounts Production regarding any discrepancies in the brought forward (b/f) and carried forward (c/f) figures, you will need to rectify them before submitting the accounts to HMRC.
If the accounts have been generated using pounds and pence, this may sometimes result in a difference of £1. This will be down to how the rounding has to be applied. Items that show separately in the comparative year will be rounded independently. When the amounts are carried forward into the current year they are amalgamated before being rounded. Please see the worked example below:
In order to correct the £1 difference, you need to create a journal entry in the current year (2015) postings:
Credit £0.20 to Motor Vehicles – cost.
Should you wish to change the Profit and Loss account in which rounding differences are being applied, go to Postings > Rounding differences > Choose Account
If you would like to assign the Balance Sheet rounding differences separately, go to Postings > Rounding differences > *Tick* Apply advanced rounding rule > Choose Account (bottom one)
A difference greater than £1 implies a mis-posting. To resolve this, make sure you have posted to the correct b/f codes:
NOTE: If you originally generated opening balances automatically within the posting screen and changes have since occurred in last year's trial balance, you will need to regenerate the opening balances:
The correct brought forward balances can also be confirmed by opening the previous period in Accounts Production and viewing the Full Financial Statements.