I am just finding my way around your software, and it is allocating unpaid/outstanding invoices as an assett sujesting I will need to pay tax on these not yet realised payments. Is this correct?
Hi Tristan,
For personal income tax and corporation tax, yes, invoices normally count towards your taxable income, even if they have not been paid. However, I am not a tax expert - you should check this with your accountant or tax office.
Note that when you create an invoice it will affect at least two accounts:
1. Accounts Receivable - this is an asset account
2. The account you specify on the invoice line - this is usually an income account such as 'Sales Income'. It is this income account which affects the profit as shown in the Profit and Loss report.
Cheers,
