Historical Bookkeeping Error Correction

Records that exist but contain mistakes

This service is for records that are complete but wrong. Perhaps a new bookkeeper has spotted that costs were coded to the wrong year, VAT was claimed on items that didn't carry it, or a loan has been treated as income for some time. If, instead, your bookkeeping is months or years behind or missing, our bookkeeping rescue service is the right place to start.

Common historical errors

• Income or costs recorded in the wrong accounting period.
• Capital purchases expensed, or revenue costs treated as assets.
• Personal and business transactions mixed up, affecting the director's loan account.
• Loans, grants or capital introduced coded as sales.
• VAT codes applied wrongly across many transactions.
• Year-end adjustments never entered into the software, so it no longer agrees with filed accounts.

How we correct past periods

1. Scope. We establish which periods and accounts are affected and whether accounts, VAT returns or tax returns have been filed for them.
2. Quantify. We calculate the value of each error and its effect on profit, VAT and balances.
3. Correct the records. Where periods are locked or already reported, we usually post adjusting journals in the current period with clear narratives, rather than rewriting history.
4. Deal with filed returns. We advise whether earlier returns or accounts need amending, or whether the correction can be made going forward.
5. Document it. You receive a summary of every error, every correcting entry and why it was made.

Impact on filed accounts and returns

The right route depends on the type and size of the error and on time limits set by HMRC and Companies House. Some VAT errors can be adjusted on a later VAT return, while larger ones must be reported separately through our VAT error corrections service. Material errors in company accounts may lead to a prior year adjustment. Where tax has been underpaid, we can help you correct it with HMRC through tax disclosure and correction.

We work through your software's accountant or advisor invitation, never your passwords. If an error was caused by a software fault, such as an integration posting incorrectly, we'll help you raise it with the provider while correcting the records ourselves.

What we'll need

Filed accounts and tax returns for the periods involved, submitted VAT returns, bank statements, and any notes from whoever spotted the problem. Source documents for disputed items help us confirm the right treatment.

Helping Kent businesses put the past right

We help businesses across Kent correct historical records calmly and properly. Once corrected, your year-end accounts start from a sound base. Get in touch to tell us what you've found.