Hi,
this looks very interesting as I am launching a new business. Can i use solar accounts to start my business using the cash accounting method to account for vat and then switch to invoice date vat at a later date
Thanks
karl
Hello Karl,
Yes, to set Solar Accounts to use the 'cash' method for calculating your VAT return, click menu Setup > Contact Details & VAT > VAT Is Calculated When Payments Are Received.
To change to the normal method, set the VAT Is Calculated field to 'When Invoices Are Issued'. You will need to be careful when making the switch. In particular, you will need to manually adjust your next VAT return figures to account for the change. For example, let's say the previous VAT return required a payment of £100 using the 'cash' method, but using the 'normal' method it would have required a payment of £250. That means your next VAT return payment will need to increase by £150 above what Solar Accounts calculates. We recommend you confirm your figures with your accountant when making the switch.
Regards,
