Run accounts in this tax year or next?

[PerfectStorm]

Hi all

Is there any advantage in saving any invoices due in the next few days and sending them to my accountant and running P&L next week in the new tax year, or does it not make a difference?

[mudskipper]

Can't see any advantage.

Looked at this a few years back when corp tax was being reduced from 21% to 20%, but corp tax is due when the fees are earned regardless of when invoiced/paid. But even if you could do it, I can't see how it would be advantageous this year.

[TheCyclingProgrammer]

Strictly speaking, shouldn't your unbilled work be entered into your P&L for your current financial year as work in progress? That's how my accountant has always done it.

[Andrew@Wisteria]

Strictly speaking, shouldn't your unbilled work be entered into your P&L for your current financial year as work in progress? That's how my accountant has always done it.

Correct, unbilled work should be included if relates to that year, same as accrued expenses (e.g. accountancy fees) not yet billed. Also bear in mind that as a Limited Company the year end might be different to the tax year.

[PerfectStorm]

As I thought. Thanks all.

[ASB]

Strictly speaking, shouldn't your unbilled work be entered into your P&L for your current financial year as work in progress? That's how my accountant has always done it.

Yes, hence it makes absolutely zero difference to the P+L.

The question is what is fair value ? Generally it is simply going to be the sale value of the work if billing on some sort of T and M basis. The only question mark become on how solid you feel the payment will be, but I think one would have a hard time justifying a provision for potential bad debt.

It may be more reasonable to defer and provision on a fixed price piece of work though.