What happens when the
balance sheet doesn’t balance? My background is in agriculture and I don’t know
much about finance. I can understand the profit and loss account, but I could
never understand or read a balance sheet.
I asked our accountant
what it meant. She said she wasn’t quite sure, it could be a number of things:
it could be a bookkeeping error, it could be that some cash was missing, or
there could be something wrong with our depreciation schedules.
She told me there was over
$18K difference, which is a lot for a small company like us. I asked her how
long it’s been a problem and why we didn’t know about this sooner? She said she
didn’t know and that she doesn’t look at the balance sheet or do a
reconciliation every month.