Right I am being a bit of a dunce tonight (Also my first time dealing with this)
I have just set up Sage for a client who's books were done manually before. Client is Vat Cash Accounting and several cheques issued last financial year were posted to last years accounts.
Cheques have now cleared the bank so am I right in thinking that I need to do a bank payment and T9 to suspense until I receive the trial balance from the Accountant.
Yes that's what I'd do. Sometimes I will rename the 9999 account on Sage to "temporary opening balances" until the TB comes in, and then as long as all the cheques have been picked up by the accountants as outstanding payments in the bank acct the balance of 9999 will be cleared.
Hi
Only thing I would add as a note of caution - with this one being VAT cash accounting and previously manual calcs, is in terms of the potential that the previous person was not doing things incorrectly so worth a quick check if the said cheques were on the VAT return.
As Im sure you know with the date of payment for VAT cash accounting is the date you send the cheque, or the date on the cheque, whichever is later (which has force of law).
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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
Thank you for your response Fin6y. I'm glad my assumption was correct but just needed to confirm before I posted anything to Sage.
Hi Joanne
I did the bookkeeping for the last two months manually so all cleared cheques have definitely been posted in previous month and included in vat return. I did notice that the previous Bookkeeper has been using the date the sales invoice has been issued rather that the date the cheque had been issued. Client had not been making a note on the invoice of the date on the cheque.
Hi Nikole Did we have a conversation about this one? I did recall having a recent chat about vat cash accounting but wasn't sure if it was with you or not (rubbish with names sometimes) and didn't have time to backtrack to check, so thought I should just sling it in. Bet you are glad you did all that lot manually now. Fab.
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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
We did have a chat because with another clients books I noticed the previous accountant had been posting supplier/sales cheques using the date they cleated the bank and it threw me because of the posting from date on actual cheque.
I am a lot happier now everything is on Sage as it was a pain on excel. The only issue I have now is client doesn't actually keep track of petty cash. So chucks all cash received from sales in the draw. Pays the odd supplier invoice out of the cash and doesn't bank at regular intervals
Oh heck! Do they have a trusted staff member that you can train to help you? I have a clients who is similar to yours, tried reading the riot act, got nowhere, but their receptionist is a total star and now keeps tracks of their doings on my behalf. She has a clear up on a Monday from the weekend carnage created. Only trouble is - what happens when she is on holiday?!!
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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
Fab.
