How do you change from cash accounting to standard accounting for VAT in Quickbooks?
Chris Bond
Replies (4)
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Use Edit - Preferences - VAT
There is an Edit menu item on the top row of menu items (starts with File, then Edit, View etc). Click on Preferences at the bottom of the menu list. Once in there the VAT icon is at the very bottom of the left hand side. Click the Company Preferences tab and you will find the switch in there.
Andrew
QuickBooks changine from Cash Accounting to Accrual Accounting
The most important thing to consider will be if there any part paid Sales Invoices or Purchase Bills as under cash accounting the part payments may have already been accounted for and cannot be filed manually (filing acts as a filter to remove it from future reports). Unfortumately there may be a certain amount of manual reconciling to do but this should only be needed to be done on the first return.
Manual adjustments?
Cheers Andrew
But is there a report or something to print off to ensure all items are included in the next VAT return. I assume if you just change the setting part way through a quarter, all the VAT reports will be wrong and previous debtors / creditors won't be included - or is it cleverer than i am giving it credit for....
Quickbooks changing VAT accounting method
Changing your VAT preference in Quickbooks only really takes effect when you run your next report. You may have trouble with unpaid items. If you have been reconciling your cash accounting VAT entries manually you can just set an early start date and pick up entries that haven't been paid and therefore have not been VAT reconciled. You can go to the filter option in the VAT detailed report and filter out previously filed items.
If you haven't reconciled entries on Quickbooks (individually ticked them as filed) you will have a bit more trouble, but should be able to run a VAT report and then manually adjust for unpaid items (not entered on a VAT return previously). Quickbooks is better set up for accrual accounting for VAT, you prob already know that you can go in on the supplier toolbar and reconcile your VAT return to avoid duplicating entries. I hope this helps.