The petty cash account having "Do not reconcile" set is not a surprise.

Consider that the 'reconcile' option is aimed at bank accounts where, traditionally, a cheque might be sent out to a supplier (and be accounted for immediately) but might not be paid into their bank account, and therefore appear on yours, for a few weeks. That's not something that happens with petty cash - it's all cash, therefore it's all immediate. Provided everything is properly recorded, therefore, it should not need 'reconciling' in the sense of a bank reconciliation.

However, as we all know, that's the theory - and in practice, business personnel exist to test such theories... sometimes to the limit and beyond.

Your real starting point is to consider just how far out the amount in the petty cash tin is compared to what's shown in Sage - is it a significant / material amount?

Also, given that you've just started, it might be worth looking at the opening balances. It could well be that the opening balances haven't been updated to match the final accounts - not uncommon. If so, getting hold of last year's closing balances and adjusting Sage might very well reduce* that petty cash difference.

* Or it could increase it. You never know. :)

Hi Joanne
I was using my email instead of my name - Doh!
Having a great day - just sorted out the Petty Cash nightmare mentioned above.
Transferred all the prev years to a temporary N/L and the Accountant is going to sort it out at Year end in May 2017.
Who knew that Post Office Services were so complicated with their VAT.
I am getting to know the VAT codes quite well after inputting around 50 receipts today.
Hope you get your internet sorted out.
Maggie