I use Quickbooks (set to accrual basis) for a GP Surgery. I'm a bit confused as to which date to use for one of our income sources: medical reports/examinations done by the GP.
I am wondering which date you would use to record the income:
1. Date the report is done. This is not recorded currently.
2. Date the work was invoiced. Usually we invoice a few days after the work was done. Occasionally we invoice in advance. Sometimes we do not raise an invoice we just telephone the customer and request payment. So there is no "date of sale" recorded as such.
3. Date money was received by the surgery i.e. cheque arrives in post.
4. Date money was banked.
I'd have thought number 2, but as you can see there is not always a clear "date of sale".
The accountant was asking me which income relates to which financial year and I realised for this I was unsure.
I'm sure someone can add to this but here's a starter for ten.
1. Report date ought to be recorded for work done - often lumped in with Work In Progress by the accountants.
2. Invoicing in advance. Conceivably, these could relate to a later period and shouldn't be included in the accounts but make this clear to the accountants. Always raise an invoice for your own files (relates to 1.) even if, for some reason, the invoice isn't sent out.
3. I only see this as significant if VAT were involved?
4. All dates of banking, invoice, report etc. should be recorded if for no other purpose than knowing who owes the practice money at any one time.
Any system worth its salt should be able to account for accrual and cash basis but then I've been spoilt with Moneysoft.
