I have a payment (accountancy fees) that relates to 2018-19 in my bank feed on 1st July 2019. I have an invoice scanned in and tagged in the receipt hub. My accountant took this into account in my expenses for last year.
I tagged the bank feed item as Accountancy Fees to link it to the scanned invoice but I think there is something I need to do to make it not appear in the current year. (It’s a non-VAT invoice). I thought I saw it once but can’t find it.
Thank you.
You should probably keep the purchase date in QuickFile as matching the date of the invoice that your accountant sent you, so what I do in these situations is to use an auto-reversing journal.
Create a journal dated on the last day of the previous accounting year to debit accountancy fees and credit accruals, and set it to auto-reverse either on the first day of this accounting year or maybe more usefully on the same date as the purchase invoice from your accountant. This will show the accountancy fees in your previous year’s P&L balanced by a liability on your YE balance sheet, which will in turn disappear once the reversing journal and the actual purchase are taken into account.
@ian_roberts Thank you. Does this look right?
and then the auto-reversing one:
The payment to the accountant was on 16 July 2019, the last day of my financial year was 31 March 2019 and the bank item on 16 July 2019 was also tagged accountancy fees (7601).
That looks right to me. If you look at the 2019-20 P&L it should now not include any accountancy fees.
