Hi
I need to provide profit and loss on cash basis for self employed, no vat involved.
Can't seem to be able to see where to set the option?
Any help appreciated
Thank you
Hi Angela,
Solar Accounts is designed to calculate the figures on the Profit and Loss report using the 'accrual' basis, not cash basis. Note that this approach is in line with HMRC requirements for computing income tax.
However, if you really want use cash basis for all reports (not just Profit and Loss) then you can simply avoid creating Invoices. Instead, record Money Paid Out and Money Received transactions with the Type set to 'General Payment' and dated the day of the payment. (I wouldn't advise this since accrual approach gives a more accurate view of the business finances)
Regards,
Hi Mark
Thank you for your reply, but i'm sure HMRC allows Cash accounting for small businesses / self employed with turnover up to
Oops Mark - cash basis for tax returns available to small businesses since 5/4/2013.
If Cash basis is being used then the 3 line account can be used on the tax return.
To convert Sales/Turnover to Cash basis
1 Do Multiple dates balance Sheet report for this year and last year.
2 Calculate movement in debtors
3 Convert Sales to cash by deducting movement if increase in Debtors & vice versa if decrease
4 Do same for Creditors & Expenses (adjust for any Creditors relating to Capital expenditure)
I hope this makes sense
Hi Angela,
Sorry my mistake - I was not aware that HMRC now allows cash accounting for income up to
Phew...thought i was loosing it there.
So how do i get my cash basis reports ??
Thank you, I have printed off all o/s invoices, expenses are not required as only enter these as items paid so that's one less headache.
I will export to excel and amend figures so print out looks more professional..
Hopefully Solar will consider this amendment asap, as a very good selling point for all business's / self employed under