Change to Accrual

[jm23bg]

Hi Anyone offer advice or a process to change from cash to accrual accounting before I start?

[QFMathew]

Hi @jm23bg

While we can’t help with this specifically (although another user may offer advice, tips or even offer to help), I have found some articles which may help:

• How to convert cash basis to accrual basis accounting
• Cash to Accrual Conversion

[jm23bg]

Many thanks Mathew, that will be a great help.
More complicated than I thought.

[ian_roberts]

Are you referring specifically to VAT here (which is where the term “cash accounting” tends to be used) or more generally to all your income tax reporting (which tends to use the term “cash basis” instead)?

[jm23bg]

For vat accounting purposes.

[ian_roberts]

You may find this thread from a few weeks ago useful:

Switching VAT accrual to Cash

Hi Am about to submit another VAT return. My accountant has asked me to move from accrual to cash accounting. I have changed the information in the VAt details section and downloaded to Quickfile calculations. Obviously, there is information there that has already been submitted previously. I am just not sure how to change the information so it just includes the relevant information so I am not duplicating! I note from a previous post that changing the date? but not sure what date and where. …

They were switching the other way (from accrual to cash) but the process and the potential pitfalls will be the same. Essentially you’ll have to make a big set of manual adjustments to your first return under the new accounting scheme in order to ensure that everything is accounted for once and nothing is double-counted, and keep a copy of all your calculations for that so you can prove what you’ve done in future.