Why am I getting a Check and Finish warning that my Balance Sheet does not balance?

This situation may occur where balances have been posted to Director’s Loan Account (account codes 5400, 5401 & 5402 and/or 5800) and allocated to specific Directors.

The individual postings are rounded separately but the overall total of the Director’s Loan Account for the specific Director is calculated before being rounded which in some situations results in a rounding difference which is carried through to the accounts.

How do I clear the warning?

To re-allocate the rounding amount and clear the warning go to Posting > Rounding Differences and tick Apply advanced rounding rules.

Note: Advanced rounding rules are available on TaxCalc v11.7 or later.

See KB3094 - What are Advanced Rounding Rules? for more information.

Do I have to select to Apply advanced rounding rules?

Where Advanced Rounding Rules have not been applied, the rounding will need to be adjusted manually.

For Example (Illustration only):

You will see from the example above that a rounding difference of £1 occurs where the un-rounded total of the total of all Directors balances differs to the rounded total. 

To prevent the difference from occurring a small journal can be made to adjust a balance so that it adjusts it’s own rounded total BUT does not affect the overall rounded total.  In this example, a journal of just 0.03p is needed to Director 1.

The double entry to account 5400 (Director 1) should be made to another account where the amount would NOT affect the rounding of that account e.g. you don’t want it to push a balance over 50p.

Making a manual adjustment should be used as a last resort where advanced rounding rules can not be applied.

If the problem persists, please contact TaxCalc support.

PLEASE NOTE: Accounts may be rejected by Companies House if submitted where the Balance Sheet that does not balance.  The Check and Finish message should, therefore, be cleared before submitting.