My father is non-technologically minded and still of the generation where he withdraws money and pays all bills by cash, therefore making tracking hard. He is a small farmer who only ever needs to submit vat returns and claim for purchases, never sales. I have never used an online software to help him as he usually has handwritten records which i then submit his returns through hmrc. I’ve chosen quickfile but can’t seem to understand why all purchases say outstanding or how all works. I’m using the free version and his accountant wants all done this way. Help. Im greatly out of my depth!
You have to tag all invoices as paid and tell quickfile how your father paid for it (from cash account, bank account …)
Have a look here, this could be useful for you
The way to deal with this is to have a “bank account” in QuickFile representing the business cash that he has on hand at any given time. When he withdraws cash from the bank that’s tagged as a “bank transfer” from the current account to the cash account, when he pays for a purchase in cash then you mark the relevant purchase as “paid” from the cash account on the date the money changed hands. If he uses some of the business cash for a non-business purpose then how to handle that depends if he’s self employed or operating as a limited company. Self-employed you can just treat it as a transfer from the cash account to the “proprietor drawings” account, if it’s a limited co then you’d use the “director’s loan” account instead.
Thank you for replying but i cant find an option to tag as paid when i upload invoices as photos. Thanks
If you’re using the receipt hub there should be a “this purchase has been paid in full” checkbox at the bottom. Alternatively you can “log payment” against an unpaid purchase later on using the buttons at the top of the purchase detail page.
After uploading the photos, you have to transform them to invoices.
Have a look here:
During that process, which is straight forward, you get the option to mark the invoice as paid, as ian_roberts mentioned above. You only have to select the account where it was paid from (cash account, bank account … )
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