How do you enter your sales and purchases if you are using cash accounting?
What purchase/ invoice date do you enter? I have only used the traditional accounting method in the past so would appreciate help with this
Hello @MarianH
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Make sure you have connected your HMRC account.
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Make sure you have entered your vat settings (Reports > Vat Returns > Settings)
Process your sales and purchase invoices as normal (the same as standard accrual accounting).
When you come to generate the vat return, it will generate based on the payment dates (the tax point).
Invoices will be assigned to the return based on the payment dates as an example, if you have an invoice dated 30/03/2024 and its payment is dated 02/04/2024 it will be picked up by the April - June return rather than the January - March return.
This often catches people out and I would stress that you check the payment dates to make sure they are correct prior to making manual adjustments to the return. If you have entered the payment date incorrectly you can view it in the banking screen and edit it.
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