i have an online mail order business
i receive payments once a week from my card processor and then multiple small payments every day for online bank transfers from customers
These small retail payments do not have invoices, just order numbers
i don’t want to create invoices for every one of these entries, i would just like to somehow group them all together as ‘retail sales’, all of them incurring Vat at 20%
Is there anyway of getting around this?
Of course - you can do just as you suggest - one invoice on a regular basis for bulk sales. In fact, we even have a tool that may help you simplify the process.
You may want to check out these two links:
I’ve also included a link below for merchant accounts, which may help with your card payment records:
I hope that helps, but please don’t hesitate to let us know if you have any further questions.
Thanks for your reply
I think I understand but I am a little new to this
The thing is when I import the csv files I have perhaps 10 small bank transfers a day. How do I ‘tag’ them to allocate them to a daily ‘retail sales invoice’ or something along those lines?
You can tag many payments to the same invoice, though it’s a process of a few steps - you have to say “payment from a customer”, then pay down multiple invoices, select the generic “retail” client and then it will list the outstanding invoices. Simpler might be to have a bank tagging rule to tag all these little payments in as payments on account to the “retail” client, then on the daily invoice you can log payment -> apply from credit to attach them all in one go.
would it be possible to ‘tag’ every payment into this account as a retail sale?
if so, can i have a step by step guide as i am struggling to understand some of the instructions
Click Tag Me! next to the transaction you wish to tag
Click Payment from customer
Select Pay down multiple invoices or hold on account
Enter the client name that you created (e.g. “Daily Takings” or “Shop Sales”, etc.)
Select the relevant outstanding invoice
Alternatively, you could bulk input your sales. So rather than having the following individual transactions for one lot of daily (or weekly) sales:
You could simply enter this as one income of £27.47.
The main things to consider are - your bank balance should ideally reflect your true balance, and you shouldn’t really cross two periods (e.g. logging 2016/17 takings in your 2017/18 year).
i am really struggling to understand this.
so i need to create an invoice each day for sales i have made, then tag the individual sales to said invoice?
Also, i don’t seem to have this option when i click on ‘tag me’
@jameslongly - That’s correct. Although you can do this on a weekly basis if that’s easier. The two links I posted above explain this in more detail with step-by-step instructions. The cash register tool can also speed this process up.
Just think of an invoice as a way of accounting for income in this case rather than an actual invoice being issued to a customer.
If the transaction is money in, then you should see this options. I’ve highlighted the one I mentioned in the image for you:
I hope this helps, but please let me know if we can help further.
Hi, no i don’t have a system that issues invoices
i only issue invoices for wholesale orders which are few and far between and i create these manually in excel
currently i get about 10 bank transfers a day and 1 payment from my card processor per week. I do not issue invoices for these payments, they are just for orders placed on my website
i can download this info from my bank statement, put it in a spread sheet and see exactly how much money i have taken over a given period of time and calculate the VAT i owe on it.
I then look at all the debits on my bank accounts from suppliers and i know how much VAT i have already paid
This takes a few minutes for hundreds of transactions over a quarter
I want to use a package that creates nice invoices and calculates everything automatically but it just seems like 10 times more work than doing it the way i currently do it.
could i perhaps just use the package to enter invoices received from suppliers and then at the end of the quarter create one payment for all the retail sales bank transfer into my account?
That’s sounds correct. Although I’m sure the situation can be simplified.
I’m assuming you have a system that issues invoices on your behalf. This should be able to give you a report of what your sales are (and that saves you tallying them up).
Even simpler, you could bulk tag them to the clients account and then allocate it as a lump to the invoice (as per @ian_roberts) suggestion above. As Ian also suggests, if it’s a common description, you can automate the first half of the process (below) with bank tagging rules:
The truth is, there are multiple ways this could be done, but QuickFile is flexible. The best thing to do is try a few different methods and see what works best for you.
It’s also worth noting that in the gif I tagged a card deposit straight to their account - this may actually be in a different bank account, depending on how your card processor works (there’s a guide for that above).
no, i do not have a system that issues invoices, i only issue invoices for the odd wholesale sale i make and i do these manually.
Currently, each quarter i put all my credits from my various bank accounts into a spreadsheet and add them up to see how much VAT is payable. This is somewhere in the region of 500 entries per quarter.
Doing this takes about 5 minutes per quarter
in another spreadsheet i list all my supplier invoices and i add up the VAT element i have paid to them
This job takes a little longer
I would like to be able to use an accounts package that ties all these things together but it just seems like it is going to take much more time and effort to do using quick file
Perhaps i could use it for individual debits - i input my supplier invoices and tag the bank payments
and then just have a quarterly or monthly amount for all of my retail bank transfer sales
would that work?
That could be a good approach, if you set up a “merchant” type bank account in QuickFile called something like “retail sales”, and tag the small payments into your current account as transfers from there. This will push the merchant account overdrawn, then every week/month/whatever you can create a manual money in transaction on the merchant account to bring the balance back to zero and tag that as payment from a customer to create an invoice and account for the VAT. As long as you always account for all sales in the correct VAT quarter that should be OK - you’re using the standard “point of sale” retail scheme with all your sales treated as 20% VAT.
One question though - for card sales does your payment provider pay you gross and then take back their fees, or do they pay you net of fees? For the VAT retail scheme you need to use your gross takings otherwise you may be paying too little VAT to HMRC.
Hi, thanks Ian, i will have a think about all of this
At the moment i am probably going to stick with my spreadsheets and use quickfile just to issue the odd wholesale invoice as that part of it seems straightforward
As for the card payments, the way i currently do it, i use the gross figures manually from my statement they send me and then deduct the fees etc. so i would not actually be using the figure from my bank statement, you are right. Another reason to think i am better off sticking with the way i do things for now…
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