Accounting - Profit and Loss

[dawnveal]

Technically not to do with horses but... I need to keep accounts as I do a bit of work on a self-employed basis. I'm just wondering if anyone knows whether I should include invoices raised in my Sales figures although I haven't been paid yet. I know I will get paid during October but it was for work done in April. It will make quite a diffence to the tax due so I want to get it right.

 

[poppynurse]

I use the cash accounting method - ie only include items when paid or cash received. I think the revenue are happy as long as you use the same methods consistently

 

[mrdarcy]

Generally speaking yes you should make up your accounts based on invoices raised not monies received. If you're really struggling you can ring the Revenue customer service line and someone there will help you

 

[burtie]

Yep we account on a cash basis too, makes things a bit clearer and easier especially if soem customers are slow to pay!

 

[magicgirl]

Provided you are consistant the Inland Revenue don't usually mind. They are very helpful if you ring them.

 

[Baggybreeches]

I do my hubbys accounts and I work on a cash recieved basis. It is much easier and means that you are only liable for money that you have recieved, rather than sometimes large sums which may never materialise!