I am now at the stage where I am going to have a go at producing the monthly management accounts. I have had a look at the previous two months of journal entries for accruals and there are postings for sales/purchase tax.
Why is this. Am I missing something really simple? Client is on a standard vat scheme and last vat quarter was upto 30th September and journals have been posted for August and September. No other journals have been post other than the two months mentioned.
From what i have seen briefly the management accounts are produced on a spreadsheet each month and are up to date as of end of September.
Double entry is:
CR - Vat on sales £3009.25
CR - Vat Account £2458.76
DR - Vat on Purchases £5468.01
There are no reversals for the entries in either of the months. I did think of missing invoices but then there is no reference to this at all.
This same procedure was carried out in August. There is nothing prior to this which i found odd. I haven't run a dummy vat report yet and the previous Bookkeeper was up to date until end of October.
Oops just noticed spreadsheet. Sorry. Scan reading! Ive been told off before on here for doing that!
Within the spreadsheet does it actually separate out the VAT when you process a sales or purchase invoice. Wondering if the VAT is done elsewhere and lump sum adjustments to the control accounts each month. Total on the VAT account over the three months is then your VAT due.
Although that of course would be bonkers as it still needs the reversals (and dont even go there on MTD).
Needs a lot more drilling down to find out.
Unless Im missing something obvious - which is possible today.
__________________
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 have only brought the journal entries home with me. Wish i'd have brought everything now. I think i need to have a good look at the spreadsheet to see if i can spot anything. I'm not back in their office for a week so thought i'd try and get a better understanding of everything in my own time. I might have to nicely ask my client n to email me the spreadsheet.
