Books are always months behind

At Tally vouchers, bank entries and invoice files, the accountant or munim can usually see the earliest warning. Accounts are updated just before GST or audit, never in time to use. Check it before staff spend time correcting work that has already moved on.

What it looks like

• The accountant or munim has to search Tally vouchers, bank entries and invoice files before answering a routine question.
• Accounts are updated just before GST or audit, never in time to use.
• Staff cannot locate source invoices, reconciled ledgers and supporting vouchers for the latest case.
• People spot the gap after the owner makes a decision using incomplete or misstated numbers.
• The open case has no documented owner, due date or proof of closure.

Why it happens

The specific failure is left unchecked. Accounts are updated just before GST or audit, never in time to use. If there is no recorded owner for that condition, the effect travels to the next team.

The work and its evidence move separately. The accounting entry is posted after the source document has already moved through the business.

A later hand-off exposes the gap. A ledger total can look complete even when bank items, credit notes or stock adjustments remain unmatched.

The less obvious cause: A control may exist on paper but still fail in practice. Test whether someone actually performs this check: list documents waiting in the accountant's inbox and physical files.

Find the first failed hand-off before changing staff targets. A completed register alone cannot prove that physical work happened.

What to check first

1. Compare dates of last posted sales, purchase and bank entries in Tally. Compare dates, quantities and references. Mark an unconfirmed difference as unverified. Finish the first pass in under 30 minutes and name the missing source if needed.
2. List documents waiting in the accountant's inbox and physical files. Record the affected item or party and the person who can verify the detail. Finish the first pass in under 30 minutes and name the missing source if needed.
3. Check whether monthly reports use provisional or incomplete numbers. Mark each exception open, waiting for evidence or resolved, with a named next owner. Finish the first pass in under 30 minutes and name the missing source if needed.

How to fix it

1. Start with one live case. Compare dates of last posted sales, purchase and bank entries in Tally. Keep the source reference before changing the record.
2. Make the control explicit. Set a daily document entry cut-off with one receipt tray. Put the rule in the register or sheet that staff already use.
3. Set a second guardrail. Reconcile missing entries weekly instead of at year-end. Preserve the original evidence for every correction. Unverified figures must be marked provisional in management reporting.
4. Assign the next decision. The accountant or munim records the action and its due date. A separately authorised person signs off changes affecting money, safety or customer terms.
5. Review the open list. Start with items affecting today or tomorrow. Keep third-party commitments separate from completed actions.
6. Check whether the rule holds. For four weeks, count old unposted entries and balances without reconciliation. Reopen repeat cases and identify where the control failed.

Copy this accounting exceptions and close checklist into a register or sheet:

Retain the source reference and limit access to authorised staff.

A worked example

Illustrative example only. A service company records ₹3,60,000 of purchase bills six weeks late. Start by locating the source that would verify these amounts or quantities. The accountant or munim records the exact exception, gives it an owner and checks the next relevant event. This example shows how to structure the decision. It does not claim that a business achieved a saving or avoided a loss.

How you know it is fixed

• Completeness: Count old unposted entries and balances without reconciliation at the same time every week. Record the count and the oldest item, rather than just saying things are better.
• Timeliness: Check whether the assigned person took the next action before the agreed cut-off. Keep missed dates visible instead of replacing them silently.
• Proof of closure: Sample three closed cases and locate source invoices, reconciled ledgers and supporting vouchers. A tick without supporting evidence is still an open control gap.

When it is more serious

Overdue filings or materially misstated books need a CA. Hold irreversible decisions until the material facts are verified. For contracts, tax, wages or legal rights, retain source documents and consult a qualified adviser. Repeated exceptions after four reviews may require changing the control.

This works if someone does it every day. In most businesses, that someone is you.

Questions people ask

What should we check before taking action?

Compare dates of last posted sales, purchase and bank entries in Tally. Keep its date and reference. Then compare it with source invoices, reconciled ledgers and supporting vouchers; if they disagree, record the difference before changing either one.

Who should own the next action?

The accountant or munim should own the open item. The person authorised to change money, a technical standard or a customer commitment must still approve that decision.

Can we run this control without new software?

No. Start with a shared sheet or register containing the reference, owner, promised date, status and evidence. Once those fields are reliable, decide whether a system connection is worth setting up.

When is the issue serious enough to escalate?

Overdue filings or materially misstated books need a CA. Keep supporting records and get specialist help where relevant.