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invoice issue.

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    invoice issue.

    Purely an accounting question - so if I have an invoice issued on 2nd April for work relating to the prev. month up to 2nd April. Paid 7th April. Does it matter which accounting year I include it in as long as I include it?
    Lisa: "Gary, you can't blame yourself for what gorillas did."

    #2
    Originally posted by babybel View Post
    Purely an accounting question - so if I have an invoice issued on 2nd April for work relating to the prev. month up to 2nd April. Paid 7th April. Does it matter which accounting year I include it in as long as I include it?
    If your company year end is 31 March and you have not invoiced for work that you have completed up to this date, you should include this as 'work in progress' in the year end accounts.

    Then reverse this adjustment on 1 April, so the income is not included twice when you raise your invoice on 2 April.

    If you are VAT registered, you need to make sure the 'work in progress' is the net income, after VAT payable to HMRC.

    We're all ears!

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      #3
      Originally posted by babybel View Post
      Purely an accounting question - so if I have an invoice issued on 2nd April for work relating to the prev. month up to 2nd April. Paid 7th April. Does it matter which accounting year I include it in as long as I include it?
      Your accounts should be produced on a accruals and prepayment basis, meaning you should account for the this in the period it relates too not when you are paid.

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