Forum Message

Missing Creditors from last year

I have input opening balances from the accountant for my clients previous years books but on starting this year I have come across a number of Invoices that are dated for the previous year but paid in this year however they do not appear on the creditors list from the accountant.

Do I put them in as invoices dated last year and post them to account retained earnings? or should I post them dated the first day of this financial year?

He uses cash accounting for VAT?


Posted by Charlie on May 18, 2012 10:40 PM BST

Hi Charlie

Firstly I recommend you check with the accountant that the reason the invoices are missing from the list of creditors is due to an oversight. If this is the case, add the invoices to Solar Accounts dated in the previous financial year and with the Account on the invoices set the Retained Earnings. Then get a revised balance sheet report dated at the end of the previous financial year (ie. one that takes into account the missing invoices) and enter the opening balances of the Retained Earnings and VAT Liability balances to match the Balance Sheet report.

Also, please check the above approach with your accountant.

Regards


Posted by Mark McLaren (Solar Accounts) on May 19, 2012 10:47 AM BST