When you start using Quickbooks and open a client account it asks for your opening balance. When on cash accounting, the opening balance will include a net sum that has alteady been accounted for in the previous year’s accounts income, and an amount for VAT that is to be accounted for once the invoice is paid.
I can’t see how Quickbooks is dealing with this – or is there something else to be done when setting up the brought forward balance? It doesn’t seem to ask the rate of VAT for this balance either.
My name is Jennifer Johnson and I’ve worked in the accounting industry since 1992, mostly as a freelance bookkeeper and QuickBooks consultant for small, privately-held firms. I had clients across the country and was certified in QuickBooks from about 2004 to 2011. I wrote a number of ebooks about QuickBooks during that time. In 2011 I accepted a full-time staff position with my largest client, and sold my bookkeeping practice. I finished my undergraduate degree in accounting in 2016, and then my masters in accountancy in 2018. I now teach accounting at the University of Illinois Urbana-Champaign, one of the top accountancy programs in the United States, if not the world. AMDG
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