We changed from NetSuite to Business Central at our FYE 10/31/2023. There has not been a successful bank reconciliation performed on our many banking and credit card accounts. Our consultant has yet to properly enter the beginning balances which tie to our filed tax return. We don't even have adequate financial reports worth running. This has been an accountant's nightmare not to mention costly.
Last we were told by the consultant was the statement balance, which you reconcile to obviously, is to match the GL balance. However, we always have deposits or payments in transit. This could be from a customer remittance notice or vendor payments recorded for 10/31 but showing on the bank statement in a later period. So, when I asked about the transactions in transit, the consultant's response was:
"It goes to a clearing account until it actually clears the bank. This is why you have the A/R cutover, A/P cutover, and Inventory cutover. This is a method a lot of companies and accountants use".
I strongly disagree since the cash is overstated $300K, A/R shows a credit balance, and Retained Earnings differs $800K in comparison to our tax return and final NetSuite Trial Balance, for the fiscal year-end.
In my 15 years of public accounting, I have never seen a software operate in this manner, not QuickBooks, NetSuite, Sage, or Peachtree. Have we been misinformed entirely? I like running the balance sheet as of date to see current banking and credit card balances. If our GL is not reflecting those transactions in transit, then how or where?
