I started using Solar on April 1st and thought everything was going well, until today I realised that when a customer pays an invoice instead of recording the date the payment is received Solar has been recording the date the invoice was raised, therefore my accounts are inaccurate because I am showing a great profit for April, but a loss for May (because many of the invoices were raised in April but paid in May). Please can you tell me if I have been entering payments received incorrectly and how I can overcome this problem.
Hi Brian,
It is more accurate to calculate your profit based on when you issue invoices, rather than when the invoices are paid. More importantly, HM Revenue and Customs treat invoices as income and expect you to pay tax on this income, even if the invoices haven't been paid. Therefore I recommend you leave the invoices as you have entered them.
Regards,
