Year end work in progress

Year end work in progress

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Client is a sole trader and has an accounting year end of 5 April 2011.

Accounting records provided include a full list of sales invoices raised 6 April to 5 April and always has done. Turnover declared always reflects this summary.

Despite always saying 'do invoices raised reflect all work undertaken' in the accounting year, I have just found out that the client sits down and invoices every 3 weeks. Therefore invoices dated say 15 April 2011 will relate to consultancy days work pre 5 April 2011 and I suspect this income will be in the region of £10k.

The question is whether I have to account for this as 5/4/11 WIP? I think the answer is yes, but as this has never been done previously and the situtaion has been the same for years, do readers think that in the event of an enquiry saying to HMRC accounts have always been prepared on an invoices raised basis would wash?

What about previous accounts as technically they are all incorrect as no WIP included.

Thanks

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