We switched to the Cash Accounting scheme a couple of years ago to help with cash flow.
Can anyone tell me on what basis sales should be recorded in the accounts. I am AAT qualified and my understanding was that the general accounting principle was on an accruals basis - does this change because we are using the Cash Accounting scheme?
Thanks in advance.
Jeanette
Replies (4)
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Yes
Anything invoiced in the year would be included as sales for the period (paid or unpaid). Anything that was already paid at the year end but was not invoiced until the next accounting period would be a prepayment.
Hope this helps :-)