Can someone please guide me with regards to tagging payments. I am going to open a new qf account and will be receiving payments for debtors/creditors from 2019. Also, I will be getting vat refunds for November/ December 2019.
I need help as to how to tag the payments when they are received in jan, as there will be no sales/purchase invoices to link them against as it will be a new account. Should I open two bank accounts for old debtors/creditors? or is there any other way to approach this and tag payments?
Also, how do I approach the vat payments as I have run a test scenario, where I will get a £5,000 refund in jan and I have tagged the payment as vat liability, however in the chart of accounts I now have £5,000 credit. How do I balance this so that the 2019 vat does not affect the 2020 vat records.
Can one of the mods or users who have been in this situation before shed any light on the above.
What system were you using before you switched to QuickFile? Are you able to get a final trial balance from that system that you can import into QuickFile as that should have the right opening balances to counteract things like the VAT repayment.
For outstanding invoices it depends whether you’re on accrual or cash accounting for VAT - if accrual then you can simply use your previous trial balance in full including the debtors and creditors control accounts, and just tag any payments made or received against 2019 invoices as “something not on the list” to the relevant control account. But if you’re on cash accounting then you’ll need to create actual invoice/purchase records in QuickFile for all the outstanding items with the correct VAT and adjust the trial balance to match, so QuickFile has the right information from the payments to feed into your next VAT return.
Have been using Qf but its not accurate and accounts are in a mess, hence why thought that might aswell will start a new Qf account. So in terms of vat what do i do? i will submit vat return for november today and i will get a refund some time in january, and then i will submit decembers in jan and get paid in feb and so on. When the refund payment comes into the account for nov and december, what do you suggest I do?
As for cash or accrual accounting. I am guessing its accrual. so should i create opening journals for debtors and creditors and then tag them as you are suggesting? or do i just open dummy bank accounts with the relevant + - figures. and then tag them against the account as and when the payments are paid/received for 2019.
It’s very difficult to get things exactly right like this when you don’t have a trial balance because in double entry book-keeping everything always has to balance to zero - if you create an opening credit balance on one account it has to be matched by a debit somewhere else. If you
then the matching contra entry goes into the suspense account by default and will sit there as part of your P&L until you journal it to where it really belongs. You may be better off hiring a book-keeper who knows QuickFile to do a few hours work getting your existing account back into shape rather than starting over and having to do all sorts of hacks to your opening balances.
I don’t mean to be harsh but if you can’t say for sure whether you’re on cash or accrual accounting for VAT then I would say you definitely need to speak to a professional (accountant or book-keeper) at least for a brief consultation to get things straight, given the penalties and the huge amount of admin headache if you get your VAT wrong.
I just want help as to how to enter three journals and what 2 codes i would need to balance each of them out, please.
1- Debtors
2- Creditors
3- Stock value
Also with regards to Vat, what do you suggest i do. I am in minus vat liability every month. so what journal do i have to create for that for previous past two months?
Hold up. So you always get a vat refund? Are hmrc aware of this? Do they know you will always be getting refunds? Usually if your vat registered with the intent of getting refunds each quarter hmrc need to be made aware of this otherwise they could argue you registered Purley to benefit yourself. Thats a side issue.
If you are on accrual accounting you need to input all invoices and receipts that relate to the vat period your submitting first. Purchases which relate to stock should automatically go in to stock.