I am just about to post some accruals and just need to clarify something. If the company is cash accounting can i post the accrual journal as gross rather than net and then posting the vat to the control account.
If I'm understanding the question correctly, then I'm going to say no.
I'm taking it as meaning accruals such as provisioning an amount in the P&L each month for something that is billed quarterly, such as electricity, in which case, the VAT scheme you are on has no relevance; the purpose of the accrual is to put a charge in the P&L (and raise the corresponding accruals control account balance). There is no need to accrue the VAT.
If you mean something else, it might be a good idea to provide more information.
Stating what software you are using is also a good idea.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Whilst we know that 'cash accounting' is for companies below the VAT threshold, I think you should also amend the title to read VAT cash accounting so its clear.
Agree with Vince - need more information as to what the transactions are.
Also - worth asking the question - what do you do when posting accruals/prepayments if your client is on standard VAT?
Apologies for my wording ( I did mean vat cash accounting)
I have a utility bill dated 5th May for supply from February to end of March. Year end has not been finalised yet and as the bill is dated in the new financial year. I need it to show as an accrual for y/e 31st March as it relates to that period.
No Nikole - its absolutely not a stupid question at all.
I was just trying a different approach as I knew you would know the answer - it just takes a step back sometimes to see it. We all get into the 'OMG panicccc' situation when we are busy too. Keep thinking too much - it proves you cover everything!!!!!!!
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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
I do feel like a birk sometimes when i have asked a daft question. I do like to make sure i have covered everything even if it means a task takes me that little longer to complete.
I do feel like a birk sometimes when i have asked a daft question. I do like to make sure i have covered everything even if it means a task takes me that little longer to complete.
Dizzy moment over :)
Have a lovely weekend.
Totally get you on taking a bit longer to make sure you cover everything. Talking of dizzy - am just about to go blond again, then I can have some more fun!
You have a great weekend too
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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
