My profit and loss is calculated on invoices sent. Is it possible to change this to income received?

Hi Paula,

Unfortunately no, Solar Accounts will always calculate the Profit and Loss
figures using the 'accrual method', which means an invoice dated in the
report period is counted as income even if it is unpaid. You'll need to
make an adjustment to account for any invoices which were unpaid - to do
that, view the 'Outstanding Invoices' report dated at the beginning and end
of your Profit and Loss period.

Thanks. However I am not sure what you mean in terms of adjustment. Can I just deduct from my income for the tax year the invoices than remain unpaid? Is this Ok with the tax man?
This is my 4th year using Solar and I have always just paid tax using accrual method. Can I change to help me in this extraordinary year?
Thanks

Paula

Hi Paula,

You will need to check with your local tax office to see whether they will
let you change the Profit and Loss methodology from 'accrual basis' to
'cash basis'. If they let you do that, then you simply reduce the amount
of your sales by the unpaid invoices at the end of the year. You will also
need to reduce your expenses by the amount of unpaid supplier invoices at
the end of the year.

(Note also for the following financial year you will need to work out the
change in the value of unpaid invoices - for example, if the total
unpaid invoices figure was the same at the start of the year and end of the
year then you would not make any adjustment to your P&L figures)

Much appreciated.