Ltd co customer y/e was Sep and he has signed off final accounts. He only received one invoice for rent so I accrued rent monthly at rate of £750.
Just had invoices from landlord in, dated pre year end (15 April / 1 May) and Ive not accrued enough (although not far out!).
What is the best way to go round reversing the accruals and keying the invoices - should I use a date in the new financial year for keying the invoices (but annotate with date of actual invoice) and reverse accrual as at start of new financial period?
Im still getting brainache with accruals/prepayments but more to do with the dates than anything!!
Invoices I now have!
15 April - insurance 8 march 13 - 7 March 2014 (not accounted for at all as didnt know about it.
1 May - rent 24 June 13-28 Sep
Thanks in advance
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
As the accounts have been signed off then if you dont want to go back and amend them easiest thing to do is reverse the accrual for last year at the start of the current year and then post the invoices dated 1 Oct 2013 and narrate in the details what period they cover.
Bottom line is that client is getting tax relief a year later than they should have but if amount isnt material then doesnt justify going back and amending the Sept 2013 accounts.
