I’ve always operated on cash basis as a sole trader as everything is paid there and then, there are no invoicing or purchase orders sent.
However now that I operate as a LTD company I’ve just come across information that I need to be accrual based as a new company I’ve not submitted any accounts or paid tax yet so I can fix this without any consequence.
I’ve been through the settings in QF and i don’t see anywhere to check what I am set up as or how to change it. In other software theres usually a setting for this.
Could someone please point me in the right direction or am I missing something?
Just to add to my colleague’s response, all entries in QuickFile are treated as an accrual basis for accounting. The setting Steve mentioned only relates to VAT returns.
So any reports (unless they specifically state “cash basis”, which generally isn’t permitted for limited companies) will be accrual as standard.
If you were previously using QuickFile as a sole trader and you’ve now changed to a limited company then you can’t simply change a setting on your existing QuickFile account, you must create a brand new account for the ltd co. The new company is a different legal entity from you as a sole trader, so when you “converted” what actually happened was that you sold (or otherwise transferred) your business as a going concern to the new limited company. Your existing QuickFile account gives you the information you need to complete the self employed bit of your last SA tax return, the new account gives the company the information it needs to complete its annual accounts and corporation tax returns.
Once you’ve created the new account for the limited company then @QFSupport can copy over your client and supplier records from the sole trader one for continuity, but your historical sole trader invoices/purchases/journals are of no concern to the company, it didn’t even exist when those were issued.
Hi. Thanks for the information, I’m using a newly created account. Whilst self employed I’ve been using excel to record my income and expenses so theres no overlap