Hello. I've scoured the forum and can't find the answer to this. I'm sure it must have come up for others though. Our accountant has now finalised our accounts for the last business year and invoiced us. His invoice, though dated in this business year, relates to the last business year so has been accounted for (in our published accounts) in the last financial year. How do I record the invoice in Solar Accounts; do I just enter it with the last date of the last business year (i.e. not its actual date)? Or is there a better way of doing it?

Hi Anthony,

Yes, I would simply enter it into Solar Accounts on the last day of the financial year to which it applies. However, please check this approach with your accountant.

Regards

I would imagine that your accountant would have created an accrual for his fee in the accounts. If so, you should enter the invoice on its date of issue & post it to Accountancy account. The accrual will have been debited to that account last year & credited to the same as an opening balance this year. Often the accrual is not exactly the same as the invoice & the difference is adjusted for this current year.

For example:
Last year Accountancy Debit Credit
Accrual c/f 500.00
P&L Account 500.00
==============================================================
This year Accountancy Debit Credit
Accrual b/f 500.00
Invoice 525.00
Accrual c/f 550.00
P&L Account 575.00
------------- ------ ---------
£1,075.00 £1,075.00
======== ========
Next year Accountancy Debit Credit
Accrual b/f 550.00