This is my first post to this forum. I am a book-keeper for a small charity in Scotland which provides support services to individuals with a disability. I've been in this role for a couple of years and I usually invoice monthly after delivery of support services in the previous month.
I was advised by my manager that sending invoices could wait until I returned from being furloughed. I have returned to work now and have invoices to issue for support services delivered in the month of March, as well as for April and May.
How do you advise I should date these invoices?
e.g. Should I backdate the March invoice with an Invoice Date of 31st March and send the months individually (perhaps with an Issue Date of today's date)
Or should I invoice for 3 months' service with Invoice Date of today's date (stating the dates of service delivery)?
We are zero rated for VAT.
Any advice is appreciated.
Thanks in advance,
Margaret
-- Edited by Musgrove86 on Monday 8th of June 2020 11:39:21 AM
Please can you do an intro - we always ask newbies.
Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, who is your MLR with, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That sort of thing. Helps get to know you but also how best to pitch answers.
Also please add your first name so that it appears under the signature bar on your posts? (Edit profile --->signatures)
A bit more info re the invoices might help. What kind of services? VAT? VAT scheme? Why was no-one else dealing with these in your absence?
__________________
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
It would be useful if you could answer all Qs asked and pop your name on so that it appears as Ive suggested, ie below the line. (Caron, you need to do the same!)
So, do I take it you are not yet qualified? Are you a student? Or have no intention of taking exams?
Please also, never ever (#)edit a post AFTER people have responded, because how can people see that you have wholesale changed the post? I only spoted it because Im being nosey this morning. It doesnt show in the feed!!!!
# unless to alter minor points eg spelling erroes (and then say why youve edited)
I will pop the original Q back on.
__________________
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
Please also, never ever (#)edit a post AFTER people have responded, because how can people see that you have wholesale changed the post? I only spoted it because Im being nosey this morning. It doesnt show in the feed!!!!
Cheshire wrote:
Can you please confirm
-Are you the sole finance person of is your manager head of finance?
- Are you actually invoicing as VAT exempt rather than zero rated?
- Do you issue VAT invoices with a VAT number?
- Have these clients already paid you for the March -May services?
- Are they ongoing services as Caron asked?
- If clients have not paid, what are your usual terms and what terms are you giving them for these late invoices?
Thank you for the tips. I do not have a book-keeping qualification; it is something I would consider. I haven't been in the position where I have to invoice for services that were delivered in the past.
Answers to above questions:
-My manager is head of finance but doesn't have much experience in the principles of book-keeping.
-We are VAT exempt
-no
-no the clients haven't paid towards March - May yet
-yes the services are on going
-Our usual payment terms are 30 days, therefore should I extend these to 90 days for March invoices?
Thank you for the tips. I do not have a book-keeping qualification; it is something I would consider. Look at the AAT, even perhaps just doing level 3, will probably help you enourmously and an easy level to do I haven't been in the position where I have to invoice for services that were delivered in the past. What you need to consider is whether the backdating could be to accelerate payment; an example of false accounting - which is classed as fraud. You would, if issuing a VAT invoice, need to consider the VAT legislation to ensure you were not breaching that.
Answers to above questions:
-My manager is head of finance but doesn't have much experience in the principles of book-keeping. Scary! Love managers who are promoted whilst being incapable of doing their job. I feel for you!
-We are VAT exempt
-no
-no the clients haven't paid towards March - May yet
-yes the services are on going
-Our usual payment terms are 30 days, therefore should I extend these to 90 days for March invoices?
Thank you again.
In your case, assuming it is indeed VAT exempt rather that zero rated (key difference) then I would suggest that you issue the invoices dated within each month eg 31 March and ensure the terms are in line with the extended terms that you have agreed with said clients pre furlough (will be different for each months worth of late invoices).
If you havent agreed terms pre furlough, I would suggest you ask your Manager the best method for getting a message out alongside the invoices that manages client expectations so there is no reputational loss.
Im kind of surprised that the payments were not still coming in for ongoing services, unless of course the invoices vary a lot each month. How do these folk pay? If by D/D - you need to manage that carefully.
The charity needs to look at its contingency processes as the cashflow shouldnt have stopped during your furlough, especially if services were still being given.
HTH
For any one else reading this - this process will NOT necessarily be the same if VAT is involved
__________________
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
In your case, assuming it is indeed VAT exempt rather that zero rated (key difference) then I would suggest that you issue the invoices dated within each month eg 31 March and ensure the terms are in line with the extended terms that you have agreed with said clients pre furlough (will be different for each months worth of late invoices).
If you havent agreed terms pre furlough, I would suggest you ask your Manager the best method for getting a message out alongside the invoices that manages client expectations so there is no reputational loss.
Im kind of surprised that the payments were not still coming in for ongoing services, unless of course the invoices vary a lot each month. How do these folk pay? If by D/D - you need to manage that carefully.
The charity needs to look at its contingency processes as the cashflow shouldnt have stopped during your furlough, especially if services were still being given.
HTH
For any one else reading this - this process will NOT necessarily be the same if VAT is involved
Thank you, this is where my thinking was going regarding notifying clients that we have adjusted the payment terms of the March invoice.
Nice one - you help someone out and then they delete their account!!!!!!
Lets hope she gets a new finance manager who knows her arse from her elbow otherwise she might need some more help and cant get back on because she has deleted her account.
__________________
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