I started using Quickfile on April 1st. At that point I was owed a VAT refund, which was paid into my bank account in May.
I am struggling to account for this - how do I set up the initial liability, so that I can balance the payment against it and reducing the debt owed to zero?
I am guessing it’s a journal entry, but what do I balance against the VAT owed to me?
any help appreciated
You need to enter balances as at 31 March depending if this is your year end or not, if yes enter closing balance sheet as at 31 March else TB, both using journals
That’s what I don’t understand. How do I set up balance for VAT owed. I can’t set an opening balance for VAT liability. I tried setting one side of the journal entry as VAT liability (debit), and the other as Sundry Debtor (credit). But when I record the bank payment as a VAT refund, the debtor amount doesn’t go away. What should be the balancing category for the journal entry, so that when the refund is received it is accounted for?
@jontrev - Prior to April 1st, what did you use for your accounts?
Another system altogether - QuickBooks on my PC. I have my balance sheet and my P&L ending March 31st. Bank opening balances are easy. I had a couple of debtors, which I added by simply reproducing their invoices and dating them April 1st, so they become immediate payments owing. I am also a creditor to the company, so I am going to need to add a liability to the Director’s Loan account, so I might run into similar problems as this one with the VAT.
Can you talk me through what journal entries to make?
We can’t help with individual accounting queries unfortunately, but someone like @FaradayKeynes (who is an accountant) may be able to help.
The best thing to do is to download a trial balance from the other system as of 31st March, and import this into QuickFile. This would set up all your opening balances for you. If you need help with this, please do let us know (and let us know what system you were using too), and we’ll try our best to help.
Other than that, this guide may be able to help with your opening balance query for VAT.
Here is brief generic guidance to switching accounting software system
Thanks Faraday, that’s helpful.