The company year end was 31st March and I'm doing April's accounts. I have come across alot of february/march fuel receipts.
What would you do with these? I do the accounts manually in excel. I've rang the accountant and they said to put them into April's accounts with a note next to them stating they are late. Does this sound about right?
Yes, if the Feb-Apr VAT return has not been submitted yet you can still add to it. If the accountant already has all the year end paperwork then her advice is fine, add them into this year highlighting that they were received late.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
if the company year end was the 31st of March there are still seven months left to finalise the accounts (nine months from company year end).
Generally I give a two month window after the yearend before sending everything properly formatted and all tied up to the accountant.
Could you not just put the receipts through where they should be rather than putting them into the wrong period?
From the accountants perspective if these items had been material then they would have been obliged to include them in the period to which they relate but as they are likely to be very immaterial either individually or in agregate dropping them into the following period would not justify a prior period adjustment.
The correct treatment however is that expenses should appear in the period to which they relate so if possible I would adjust your spreadsheets for February and March.
If however everything has already gone to the accountants then it would be easiest to do as the accountant instructed and include the missing expenses as an initial entry for the new company year with an accompanying note detailing that these were prior period expenses.
Shaun.
P.S. I also use Excel for everything. Far supperior to packaged accounting software when you know what your trying to achieve. (I wouldn't advise it to anyone who didn't understand bookkeeping from the manual side though).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for your replies. The accountant has no year end paperwork yet and the vat return hasn't been submitted. The receipts are all cash anyway so it won't affect the bank reconciliation. I think it would be easier to just adjust but the accountant says just add into april. I think I'm just going to adjust february to march to make it easier for my brain to cope lol!
Considering that the year end documents not finalised and VAT returns pending I'm quite surprised that the accountant gave you the advice that they did Noola.
It's not just that you are taking the easiest route but you are actually doing this correctly no matter what you are being told by the accountant.
You knew that you were being incorrectly guided by the accountant on this one so well done to you, we'll make a Jedi of you you young Padawan.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hahahahahaha thanks shamus! He said over the phone it would just be a matter of accruals and prepayments :/ very complicated and quite easily avoided in this case. I think this is good learning for me however as its showing me what advice not to take lol! And I know I always get better advice on the forum too so thanks for everyones replies!
