Hi Everyone, my first post on this forum. I have posted on another but haven't had a response as of yet!
I have recently acquired a client in the last week who needs his VAT return for the end of August completing by Tuesday! As crazy as it may sound I've taken him on as his current bookkeeper is extremely ill and unable to do the work.
The way I have interpreted things (the business owner, although in business for 15 years or so isn't very business savvy) is that his VAT returns have been completed on a cash basis - his sales are on an accrual and any purchases just taken from when they are paid on the bank/credit card statement. He is a retailer, and very often late paying his suppliers so can't see how this was of benefit to him. Anyhow, I've spoken to a VAT advice line and they have suggested that I change his VAT return straight away for the Qtr that I need to complete to an accruals basis. To make matters worse, his financial year ended on 31st March and his VAT Qtr obviously doesn't run in line. So I have year end accounts at 31st March, then a terrible copy of an excel spreadsheet showing his workings for his March/April/May VAT return on a cash basis. They recommended that I start inputting everything (I use Quickbooks online) straight away on an accruals basis. I however have several payments on the current bank statements for Jun/Jul/Aug that relate to invoices from earlier months so have been advised to date these as 1st June or so to take account of the adjustments needed in the current VAT return. As his previous bookkeepers workings are of no help, I'm unable to work out any balances for April and I think I'm generally stuck with what to do with how to get everything to reconcile as everything noted down is cash and I need to change it to accruals for his general bookkeeping and accounts. Doing the VAT return, yes I can manage that (if the above advice I've been given is correct!) but does anyone have any advice on the issues with year end dates / overlapping VAT Qtrs / opening balances etc?
ANY help would be gratefully received! I just want to bring it all in line!
I also have a question regarding their non-EU purchases. I have copies of the invoices which obviously don't have VAT on them. Key them in QBs, and then sometime after have a C79 form turn up in order to reclaim the VAT that has been charged at customs and paid by the shipping company. On the shipping company's invoice there is a figure for their charge (say £15+VAT) and then a charge for the duty paid and then the VAT paid. Does anyone have any advice as to the best way to key this in QBs? I will do the shipping company's charge separately but want to ensure that what I key from then on (duty/VAT) shows up on the VAT return correctly.
Apologies for the long post! And thanks in advance for any help!
