You should also reduce the VAT liability, although it’s likely that your first return will require a manual adjustment to ensure it’s spot on if a trial balance is included. Because of the different variables with VAT, we don’t take journals into account. So any VAT that needs to be declared on your trial balance would need to be accounted for manually. When you time comes, you’ll be able to download the calculation behind the VAT return to help with this.
Other than that, it seems right. Just to confirm:
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Raise a new invoice for the outstanding funds (either individually or for one client (‘Outstanding Balance’ or similar)), and date it prior to the start of your accounts
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Reduce your trial balance in terms of debtors control account, sales nominal and the VAT to account for this (Tip: When you create the invoice, on the invoice preview, click More Options >> Show nominal ledger entries to see what QuickFile has recorded for that invoice)
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When the time comes, download the calculations to the VAT return and check them, and manually adjust them if required.
I hope that helps! 