I am on UK flat rate tax 14.5%
My accountant produced excel calculations as in manager and I got 0.03 difference
First was obvious and I am not sure how it should be:
0.01 because in excel: 15.805 + 15.805 = 31.61, but manager calculates 15.81 + 15.81 = 31.62
Second one I can not figure out, but it is reproducible and I will attache manager backup with test case
I had 2 records 164.00 * 0.145 = 23.78, but manager calculates = 164.00 * 0.145 = 23.79
Invoice has 2 items 85 + 79 = 164
The only explanation after playing with excel I have that numbers are heavily rounded up at each operation. Is that normal accounting practice?
I am not accountant and probably I am wrong, but I just want to understand.
Could someone explain me what is normal practice on rounding numbers in accountancy.