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Opening balance journals?

#1

If all bank payments are made to invoices, should I be creating invoices as opening balances for some items instead of journals. I am thinking for things like paye and vat which are to be paid?

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#2

For liabilities like PAYE and VAT you should stick with journals - bank transactions don’t have to go to invoices, they can be tagged as “tax payment to HMRC” which goes direct to the relevant balance sheet code (PAYE or VAT liability), or you can use “something else not on the list” for payments that settle other liabilities like pension contributions.

The rule of thumb is that if it’s something that needs to contribute to a VAT return (sales on which you’ve charged VAT or purchases and overheads on which you intend to reclaim) then it should go to a sales or purchase invoice, other things that don’t belong on the vat return like settling tax liabilities or paying wages can go straight to nominal codes.

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#3

I wasn’t on planning on using the bank feed though, will this still work?

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#4

Sure - I don’t use a bank feed either, but you can enter untagged bank transactions by hand using the green “input new transaction” button at the top of the statement view, then tag them the same way you would a transaction coming from a feed.

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#5

Thank you so much, that makes sense.
Still trying to get to grips with Quickfile only signed up yesterday.
So far so good

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