Dear Support,
We have a client that must change from cash accounting for VAT to day book accounting due to turnover increases.
All VAT Returns to 31st March 2023 are on cash basis and I need to prepare the June Return to day book basis. Can the software provide reports for me that will adjust the June Return?
Regards
Hello @Bagpipe
You would need to go into Reports > Vat Returns > Settings
Make sure it is set to Accrual accounting and the vat filing start date is set to 01/04/2023
This would exclude all invoices prior to this date being included
You would need to make an adjustment for any outstanding invoices prior to this date which you can get by applying a search to the Sales/Purchase > Outstanding invoices screens
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In particular to switch from cash to accrual you will need to
- add in any invoices that were raised during the previous period (the last cash accounting one) but not paid until this period, and
- deduct any cases where payment was received last quarter for something that was only invoiced this quarter (e.g. where you were paid in advance for a pro forma invoice on 30th March and issued the VAT invoice on 1st April)
In the first case these are invoices that you haven’t accounted for under cash accounting but would be missed on an accrual return that starts from 1st April, and as mentioned above you can find those as everything that was outstanding at 31st March. In the second case you’ll already have accounted for vat on the prepayment and you need to avoid paying the same VAT a second time based on the invoice date, but I’m not sure whether there is a report that can easily list those.
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Thank you for your invaluable help…much appreciated
HI Ian,
The reports that list the cash invoices not accounted for are to be found under…Reports>All Reports, towards the bottom of the page Debtor/Creditor Report. Last VAT Return ran to 31st March so this is the date used for Debtors owing and Creditors owed.
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