Are there any plans to introduce the ability to record sales and invoices as cash accounting in the future?
Just I’m using the cash accounting scheme to do my accounting, but Quickfile is accrual.
I can get around the accrual method simply by posting the invoice date as the same date I paid it - so if for example I have an invoice dated 30/10 which I pay on 3/11, I’ll enter the invoice date on quickfile as 3/11 so it’s recorded at the right time for what I need - but sometimes I forget to do that which could potentially cause a problem.
When you log a supplier invoice on your accounting software you should use the same invoice date that is visible on the actual issued invoice. This is irrespective of whether you report your income to HMRC on a cash or accrual basis.
The same is true for sales, when a payment for a sales invoice has been made a few days/weeks after the invoice was issued, you shouldn’t then change the invoice date to match the payment.
I think what you’re referring to is more of a reporting requirement rather than how the accounting records are entered. You can run a report to show all sales receipts and purchase payments for a given period and use this to deduce the cash based profit of the business.
Hi Glenn thanks for that, I didn’t know that you could run a report for the payments and deduce the cash based profit, where would I find that? That would make things easier.
Luckily all of my incoming payments are immediate and the vast majority of payments that I make are same day, so I would only have to re-edit the invoice dates on a small number of invoices that I paid at a later date to make it all correct.
So could I run a report for the accounting year which would give me a profit and loss based on payments received/paid? If possible, I’m not sure how to do it.
It’s not actually a single report but you can easily grab a total of sales receipts and purchase payments then calculate the difference for a cash based profit figure.
First go to Sale >> View payments, then open the advanced search box and set the preset date range to match your accounting period.
In the top right you’ll get a total figure for all sales receipts:
The same concept works on the purchase side too by going to Purchases >> View payments.
This method works on the basis that you’re tagging all your income and expenditure to invoices (which usually is the case). If you tag items directly from the bank and post directly to a nominal code from there this won’t get picked up. Also journals would need to be factored in too.
Further to the previous conversation above, I think it would be great if a cash accounting process could be introduced for the annual P&L report. This would be exactly as it works for the cash accounting VAT on Quickfile - which is excellent. I do run a payments received report and work it all out - but it would be so much easier if it was automatic. As a relatively small sole-trader I don’t do accruals etc.
many thanks
