If accountant fees due for payment is an accrual b/f for 1470.00 but the bill is in fact £1593.33
I pay the accountant from my bank and my records show it is 1593.33 (coz I paid the VAT as well)
Surely this is an imbalance waiting to happen when I total up because I have no where to put the VAT because i just have to pay it on all items as not registered for Vat yet or at least the accountant I used to have never told me to.
As Peasie said those are the entries you need to make but I will try and explain the difference.
At the year end an accountant will make a provision for their fees but this is only an estimate as the final costs will not be know until everything is filed and complete.
When the final invoice is raised the difference between the estimated provision and actual bill is charged to your profit and loss account in the current year creating an additional cost or income.
If you are worried about VAT registration please contact me. You accountant may not realise you need to register as I presume they will only look at your records yearly and registration is calculated on a rolling 12 months.
Thanks for that Rob - makes sense to me now. Must have done something wrong though coz when I did the above it gave me £1400 in suspense.
I will contact you about VAT, but just need to get these accounts sorted now for uploading end of this week. I have completed them but there are discrepancies on the bank, credit c ard and paypal account so need to look at where and why? Maybe I have duplicated something somewhere. So may be back on during the evenings asking my questions.
