I've recently completed a set of accounts for a Ltd Company and sent draft copies for approval. They have raised a couple of queries, one of which is whether my charges have been included in the accounts (April 2014 - March 2015)
My immediate thought is no, because its a September 2015 invoice and will be recorded as such. BUT is that right, should I instead have accrued them to March this year? One thought is telling me the work was carried out in the new financial year and should be recorded as such and another thought is telling me the work relates to the last financial year and should be recorded as such.
I'm putting my money on new financial year, have I lost?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
If you aren't on a fixed fee, you could always blag it that you will adjust the accountancy fee, but you were waiting to see if there was any further work to be done on the accounts ;0)
Fixed fee, but it's a friend of a friend, so i'll just come clean.
But I'm lost now, how do I record it? Purchase invoice under expenses - accountancy fees dated 31st March or today's date and journal it to 31st March? (I copied everything over to VT from a Simplex D book cos it was easier for me that way, so there are no further transactions after 31st March.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I sometimes post the invoice to the accrual account instead of doing the reversal, although that relies on my memory being good. Now sage has the reverse journal option though
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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
