BrightTax automatically rounds trial balance figures to the nearest pound when producing accounts. This article explains how rounding works, where to see rounded figures, and how to handle rounding differences in the balance sheet.

BrightTax applies standard mathematical rounding to all trial balance figures:

• Figures with a pence value of 50p or above round up to the next pound
• Figures with a pence value below 50p round down

Rounding is applied individually to each trial balance line before the figures are carried into the financial statements. This means the sum of rounded lines may differ slightly from the rounded total — a normal consequence of rounding at the line level.

The Extended Trial Balance contains a Final Rounded Trial Balance column on the right-hand side. This column shows the rounded figures that feed into the balance sheet, profit and loss account, and notes. Compare the Closing Balance column (unrounded) with the Final Rounded Trial Balance column (rounded) to see the effect of rounding on each line.

If a £1 rounding difference appears in the balance sheet — where assets do not quite equal liabilities and equity — this is typically caused by a single trial balance line rounding in a direction that creates the imbalance.

To identify and resolve the difference:

1. Open the Extended Trial Balance.
2. Compare the Final Rounded Trial Balance column with the Closing Balance column for each line.
3. Identify the line where the rounding creates an unexpected result.
4. Consider whether a minor journal adjustment is appropriate to eliminate the rounding difference, or whether it is acceptable to leave it and note it in the accounts.

Q: Can I turn off rounding in BrightTax?

A: No. Rounding to the nearest pound is applied automatically and cannot be disabled. BrightTax accounts are produced in whole pounds.

Q: The balance sheet is out by £1 — is this a BrightTax error?

A: No. This is a standard consequence of individual line rounding. Identify the affected line in the Final Rounded Trial Balance column and post a small journal to eliminate the difference if required.

Q: Can I produce accounts in thousands rather than whole pounds?

A: BrightTax produces accounts in whole pounds. Producing accounts in thousands is not currently supported within BrightTax Accounts Production.