Hello, Wondering if anyone can help with this,
The way we record our finance patients on sage is we have a dummy finance account that we take a payment on account as a customer reciept as the customer has not yet recieved any work... It is not yet realised as income? the amount then gets transfered up into the bank account so that the bank account can be reconciled. As the customer has work done we invoice the customer account to realise as income and the customers minus balance reduces untill all work is complete? this obviously shows up as a minus balance on the balance sheet. do I report this as a minus balance to companies house or do i need to make a journal to correct it to a positive balance and if so what might this Joural be?
Thanks for any help in advance
Replies (3)
Please login or register to join the discussion.
Money received for work not yet done is a creditor - in theory you could have to pay it back.
A word of advice, when writing about accounting avoid words like “minus” and “positive” like the plague. Stick to the tried and trusted “debit” and “credit”.