I'm not an accountant, just someone who runs a VAT registered business and uses sage instant accounts.
I'm nearing my year end and I was just checking my turnover and noticed that it actually includes invoices raised which have not been paid in full. I generally raise an invoice, take a deposit which I put through as a payment on account and then when the customer pays the balance, I post that and clear off their account.
However, I'm wondering whether this is the correct way of doing things? You cannot raise orders on Sage instant.
So, at the moment, it looks like I've earned a few thousand more than I have actually taken.
The invoices raised go towards your turnover to give you a profit/ loss figure- the balances owed at year end go towards the make up of your balance sheet (how much your business is worth in basic terms) so yes it is the correct way to do things
