I am struggling on getting my end of year sorted.
I started using quickfile in July 2014 with my year end being end of June. I had all my previous accounts under spreadsheets etc and a friend recommending quickfile. My first step was to put in the opening balance which was what the end of year 2013-2014 figure. This ended up in suspense account with the full amount of opening balance.
I put this as the 1st of June 2014 however I realised not to include this in the 2014-2015 figures I should move it to 30th June 2014 which is what I have done.
Now I am trying to do my end of year for 2014-2015 which ended on June 30th 2015, I keep getting the opening balance being included as profit for 2014-2015.
What am i doing wrong? I’ve tried doing an end of year for 2013-2014, but it does not show the value, so I have tried moving it myself to Retained Profit & Undistributed Reserves, however it still does not allow to me do a correct EOY for 2014-2015. Any help would be greatly appreciated.
When you enter a bank opening balance in QuickFile it will need to make a balancing entry on the ledgers to explain what that balance is derived from.
As a temporary measure we will put the balancing entry into Suspense, just so you can get on with things. Later then you need to journal that balance out of suspense into the appropriate ledgers. How you do this is a little bit more complex, especially if you are coming from Excel, as this is not a double entry accounting system.
So what you would need to do here is figure out how much of that balance is derived from sales, loans, expenses etc then journal the suspense balance over to these ledgers accordingly.
I would definitely have a chat with a bookkeeper here as they will most likely be able to get all your opening balances set and save you a bit of time.
Thanks for getting back to me. Is there a way to do this without having to associate the opening balance with everything? I have 2 years worth of books to put in if that was the case. Sorry for taking a while to get back to you; my wife just had a son yesterday so been a bit preoccupied. Who would you suggest I get in contact with? Is there a number I can phone or will it be via email?
Everything would need to be categorised to make sure your balance sheet is correct. If you’re looking for an accountant, you can fill out an enquiry form on the dashboard - goes to aselection of accountants who use QuickFile.
Hope that helps!
Oh, and Congratulations!
Thanks for the update, and the congratulations I already have an accountant but he will currently look at charging a lot to look at it and I get the feeling he will probably say he doesn’t support using quickfile so will charge to change it etc.
Just to be clear, the 2013-2014 year is complete and everything was accounted for. Can i not just assign the entire opening balance to something, either existing (i.e sales) or some other custom entry since I can then lock it as the previous year so anything from the start of my 2014 year will be allocated correctly, or am i missing something?
Thank you for all your help (** tries to keep eyes open with the lack of sleep **)
The opening balance allocation is a tricky one if you’ve come from Excel. In answer to your question, yes you can allocate the whole lot to sales or possible retained earnings would be better. The question is are all those funds actually retained earning, if you’re VAT registered for example some of that cash held would have likely been a liability to HMRC.
Are you an LTD or a sole trader? If you’re a sole trader it’s less of a problem where you put the balance, as your tax calculations are all derived from the profit and loss and keeping an accurate balance sheet as a sole trader is challenging anyway given there’s no line between you and your business.
I’m a LTD company holder and yes I am VAT registered. Does that make a difference if I close off the end of year (the opening balance) as retained earnings and just process the VAT/corporation tax etc as per the calculations I made prior, just as I would an outstanding debtor?
It should be fine, although I can’t really give you a categorical answer here as I’m not an accountant.
I had already created a journal entry to move all the opening balance from the suspense account to Retained Profit & Undistributed Reserves (3101) on 30/06/2014, however when I go to use the end of year process (2013-2014) it still does not include the opening balance. When I select end of year for 2014-2015 its included in that section. What am I missing?
Sorry for pestering. Its a great site BTW
I take it no one else has had this issue? I’ve tried several things but its still not showing in the correct year.
The year end tool will take any remaining P&L balances and move them to Retained Profit & Undistributed Reserves (3101). If you’ve already journalled out the 9998 balance to 3101 it wouldn’t features on the year-end tool which only captures anything left over on the P&L.