I received an invoice for work on my previous years accounts I posted it with the received invoice date and paid it. I have then done a MTD VAT cash accounting return and a few more since.
I have just noticed my accountant has included it as an accrual I think it is called in the previous years accounts but I have posted it in this years accounts and cannot modify the date on the invoice to bring it into the correct period. is there a work around for this apart from rolling back 3 vat returns modifying the invoice and re running the vat returns?
There’s no need to roll back the VAT returns, and in fact you should not do so - for VAT purposes the purchase should be entered as the invoice date so you reclaim the VAT in that quarter and not any earlier.
In order to move the expense into the P&L for the relevant year you need to create a journal for the adjustment. Create a journal dated the final day of the previous accounting year which debits the relevant expense code (probably 7601 audit and accountancy fees) for the ex VAT amount of the accountant’s invoice (which they will have included in your previous year’s accounts) and credits the same amount to “accruals” (2109 in my QuickFile account), and set the auto-reverse date of that journal to match the date of the purchase. The net result should be to take the accountancy fees out of this year’s P&L and put them in last year’s instead.
Thank you a really helpful reply, I wish my accountant could explain things like that. I have written the journal and everything is now in the right year.