Sage Hints and Tips: preparing for audit

How to use Sage 50 more effectively when you are preparing for audit

Preparing for audit is not a five minute job, so we have put together a quick reference checklist for you. Located in the Company task menu is a link to the following system checks:

Check accounts system for potential audit queries and identify:

  • possible duplicate transactions
  • invoices not updated and/or printed within 14 days
  • customer and supplier payments on account not using a non-vatable VAT code (not applicable if cash accounting for VAT
  • sales and purchases not using standard VAT code
  • EC sales where customer record does not have VAT registration number
  • EC purchases where supplier record does not have VAT registration number
  • purchase orders which have been delivered but not invoiced

Run VAT audit check for potential tax queries

Sales analysis
  1. Any sales invoices and receipts where tax code is non-vatable or not in use
  2. Sales invoices and receipts where VAT rate is less than “percentage” and tax amount is not equal to zero and sales credits where VAT rate is greater than “percentage” and tax amount is not equal to zero (percentage entries are user definable)
  3. Any credits where net amount equals zero and VAT amount is greater than “£” (£ entry is user definable)
  4. EC sales to customers with no VAT registration number
  5. EC Sales to non EU or UK customers
Purchase analysis
  1. Purchases where VAT amount is greater than “£”(£ entry is user definable)
  2. Purchase invoices and payments where VAT rate is greater than “percentage ” and purchase credits where VAT rate is greater than “percentage” and tax amount is greater than “£” (percentage and £ entries are user definable)
  3. Purchase credits where VAT amount is equal to £nil and net amount is greater than “£” (£ entry is user definable)

EC purchases from non EU or UK suppliers

Financial analysis
  1. Journal transactions posted to VAT accounts (select nominal code)
  2. Forward dated vatable transactions
  3. Journal entries where tax code is not non-vatable (not T9)

Show all accounts verification and VAT audit reports (shortcut to report folders)

Accounts verification reports
  1. Bank – unreconciled items
  2. Financials – audit trail – deleted items
  3. Products – valuation reports
  4. Sales & purchases – time taken to pay
VAT audit
  1. Flat rate reports (cash based)
  2. Flat rate reports (invoice based)
  3. Standard VAT reports
  4. Transaction analysis reports
  5. VAT schemes reports
Check VAT values for possible errors
  1. Set date range for review
  2. Returns list of transactions for consideration with estimated tax
  3. User can amend tolerance % and refresh

Also, if the criteria you would like to report against is not available in the standard reports above, we can assist you to create your own bespoke filtered report.

For more information

For more information on our outsourced accounting service, please contact either:
Scott Harrower, Andrew Bagley or Lulu Emms, or call us on:

01483 416232