Accounting reconstruction

Dealing with neglected accounting begins with determining the current situation

When records have not been kept for several months or more, the first step is not to immediately compile all the documents found. First of all, it is necessary to determine which periods are to be settled, which documents are missing, what was declared and what is the current accounting status.

Only with a general picture of the situation can a realistic plan of accounting restoration work be made.

When do we consider accounting neglected?

Situations can be very different. One company may be out of order for several months, in another it may be several years. Sometimes the documents are collected but not brought together, and in other cases some documents or accounting data are missing altogether.

Neglected accounting may also involve unfiled returns, unreconciled balances, or unclear transactions from prior periods.

How do we perform accounting reconstruction?

1. We identify unordered periods.
2. We evaluate available and missing documents.
3. We check the status of accounting data and declarations.
4. We prioritize work and recovery sequence.
5. We restore accounting in periods and check the result.
6. We are preparing accounting for further ongoing processing.

What documents may be required?

The need for documentation depends on what information survives. Purchase and sale invoices, bank statements, salary information, contracts, fixed asset documents and other accounting data for specific activities are usually required.

If some documents are not available, we evaluate what data can be recovered from other available sources and what information needs to be requested additionally.

Unfiled declarations are a separate part of recovery

If it is determined that some declarations have not been submitted, it is necessary to first have sufficient accounting data to prepare them. Declarations should not be completed in isolation from restorative accounting.

More about this situation: handling unsubmitted declarations.

How long does it take to fix neglected accounting?

The duration depends on the number of periods, the amount of documents, their completeness, employees, VAT status and other circumstances of the company's activity. Therefore, the deadline for the works can be more accurately estimated only after an initial review of the situation.

What happens after a neglected record is fixed?

After the recovery is complete, it is important that the same situation does not happen again. Therefore, we coordinate a clear procedure for the transfer of documents and further accounting.

If a permanent solution is needed, accounting can continue as monthly bookkeeping.

You can also find a practical first action plan in the article Abandoned accounting: what to do first?.

Related information on restoring abandoned accounting

You can find a practical first action plan in the article Abandoned accounting: what to do first?.

If the main problem is unsubmitted declarations, check handling unsubmitted declarations. If you first need to determine the scale of the issues, accounting review is relevant.