Hi. With the beginning of this financial year I started to use quickfile. I had money already in my bank accounts, so I set up an opening bank balance with the Opening Bank Balance Tool. Now I discovered that these entries are all in the suspense account, on the credit side. As far as I know the suspense account should be empty (if everything is tagged and entered correctly). So my question, is it right that these entries are in the suspense account or not, and if not, how can I correct this and what did I wrong?
Any help is appreciated. Thanks
The contra entry for opening bank balances goes to the suspense account by default because QuickFile has no way to know where the money originated. You will need to look at your trial balance or balance sheet from whatever system you were using before QuickFile to work out where to journal the suspense balance.
It depends how accurate you need the balance sheet to be - if you’re a sole trader then all you really need for your tax returns is the profit and loss so you can probably get away with just putting the whole opening balance down as retained profit in the capital section, but you may need to make further adjustments for things like invoices that were outstanding at the start of the year, tax liabilities (VAT etc) from the previous year that were paid this year, etc.
Good morning ian_roberts, Thank you very much for your quick reply. Do you mean I should link it to capital introduced? I’m not on VAT and all invoices were paid before start of new financial year. Until last 5/4/19 the books were manually handwritten. I just look for an easy but correct solution to start the new financial year on quickfile. For me the best is to add a lump sum to one of the accounts. I already moved the opening balance to the 5/4, so it is not shown in the new financial year. But it is still in the suspense account. Do you think it is okay to just link it to capital Introduced or miscellaneous income. I know it is bad accounting but my books already done. I just look for something to start my accounting with quickfile now.
Thanks for your help
It’s definitely capital rather than income, I guess either capital introduced or retained profit would work but I’m not an accountant, ask one of you want a professional opinion.
Thanks a lot, it was very helpful.
Do you have a set of accounts from the end of the year? Or just a tax return? If you have accounts they should include a balance sheet and you will need to reflect those balances as your opening position on Quickfile. This should then balance out against your bank account.
If all you did was submit a tax return with effectively a profit & loss account and no balance sheet, then put the other side of the entry to Capital Introduced or Owner’s Funds.
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Hi cbmoran64,
Thanks for your reply and help. It is very appreciated.
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