I've been using it for 3 years having moved over from Taxfiler. (That was always inevitable once Iris bought them out) I sold the main part of the practice about the same time and the flexible pricing suited me. I've been very happy with the product, and have never needed any support.
Surely if the invoice is deferred two months in a row there is no difference between the figures for the two months and nothing to post? Unless I've misunderstood what you are saying.
I get rid of paper copies at the end of each month. Once scanned the the paper goes into a box and the electronic copies go into a "filed" folder. That's backed up (and emptied) to a DVD monthly and the paper copies are destroyed. Worked well for more than 20 years.
I've heard of firms who feed documents directly to the shredder from their scanner. I've never had the confidence in my backups to do that, but it seems to work for them. We're only a small office and I guess their IT systems are several levels more sophisticated than hours.
It's easy (and perhaps valid) to blame solicitors for not advising their clients about the tax. However, that was eminently predictable from the day that the early filing of such returns was introduced. I contacted all of my landlord clients at the time to warn them of this, and telling them to contact me whenever they were thinking of selling a property.
Sooner or later I'll find that one will forget but it's not happened so far, and of course if they try to blame me I can point to the relevant email.
One possible reason for wanting an LLP as opposed to a normal company could be that it's expected to make losses for the first year or two. With the LLP the losses can be set against personal income, and with a company they can't. I've actually had one client where this was the case, and that's why we set up an LLP for them
I believe that the most successful online content does not involve clothes, so the purchase of clothes is likely only for personal warmth and modesty, rather than being an allowable deduction.
I don't see many of these "influencers" but it seems to me that modesty is not an aspiration of many of them!
There's a better way to handle this sort of receipt.
When you create the new Receive Money transaction, there is a drop down box at the top of the screen which defaults to Direct Payment. Click on the arrow and choose Prepayment instead.
Enter the customer's name and allocate the sum to your income in advance account as a standart rated receipt. This will then place the net amount to that IIA account, and deal with the VAT properly. The transaction itself will sit on your sales ledger as a credit. When you raise an invoice for that customer you will be reminded of this and given the option to set the credit against the invoice that you have open.
When the work is done, or even for a stage payment, raise an invoice for the customer, and set off the credit against it. You can do this in full or in part.
When you do that the system will fully or partly reverse the Prepayment transaction, taking it out of your IIA account, and set it as a part payment of the invoice. No need to journal anything, but you would be advised to use a spreadsheet to track movement on the IIA account
Try it on the dummy client. I've used it for years with clients who pay by s/o and I don't know why I didn't offer this up in my first reply. Probably because I'm now semi (as in 95%) retired and don't need to do it on a day to day basis any more. Far better than my first offering
The VAT treatment in Xero can be triggered by the VAT code assigned to the transaction, and sometimes overridden by the classification attached to the nominal ledger code.
If you've posted the transactions as 20% (VAT on Income) and it's still posting to the wrong boxes, go back to the chart of accounts and reclassify the Income on Advance code as a current asset, and see if that sorts out the VAT. That will make any monthly management reports interesting but you can always change that description temporarily at the year end.
I'm not 100% certain that this will work, but it's worth a try
My answers
I've been using it for 3 years having moved over from Taxfiler. (That was always inevitable once Iris bought them out) I sold the main part of the practice about the same time and the flexible pricing suited me. I've been very happy with the product, and have never needed any support.
Duplicate
Surely if the invoice is deferred two months in a row there is no difference between the figures for the two months and nothing to post? Unless I've misunderstood what you are saying.
I get rid of paper copies at the end of each month. Once scanned the the paper goes into a box and the electronic copies go into a "filed" folder. That's backed up (and emptied) to a DVD monthly and the paper copies are destroyed. Worked well for more than 20 years.
I've heard of firms who feed documents directly to the shredder from their scanner. I've never had the confidence in my backups to do that, but it seems to work for them. We're only a small office and I guess their IT systems are several levels more sophisticated than hours.
It's easy (and perhaps valid) to blame solicitors for not advising their clients about the tax. However, that was eminently predictable from the day that the early filing of such returns was introduced. I contacted all of my landlord clients at the time to warn them of this, and telling them to contact me whenever they were thinking of selling a property.
Sooner or later I'll find that one will forget but it's not happened so far, and of course if they try to blame me I can point to the relevant email.
One possible reason for wanting an LLP as opposed to a normal company could be that it's expected to make losses for the first year or two. With the LLP the losses can be set against personal income, and with a company they can't. I've actually had one client where this was the case, and that's why we set up an LLP for them
Not necessarily true in this case obviously
I don't see many of these "influencers" but it seems to me that modesty is not an aspiration of many of them!
There's a better way to handle this sort of receipt.
When you create the new Receive Money transaction, there is a drop down box at the top of the screen which defaults to Direct Payment. Click on the arrow and choose Prepayment instead.
Enter the customer's name and allocate the sum to your income in advance account as a standart rated receipt. This will then place the net amount to that IIA account, and deal with the VAT properly. The transaction itself will sit on your sales ledger as a credit. When you raise an invoice for that customer you will be reminded of this and given the option to set the credit against the invoice that you have open.
When the work is done, or even for a stage payment, raise an invoice for the customer, and set off the credit against it. You can do this in full or in part.
When you do that the system will fully or partly reverse the Prepayment transaction, taking it out of your IIA account, and set it as a part payment of the invoice. No need to journal anything, but you would be advised to use a spreadsheet to track movement on the IIA account
Try it on the dummy client. I've used it for years with clients who pay by s/o and I don't know why I didn't offer this up in my first reply. Probably because I'm now semi (as in 95%) retired and don't need to do it on a day to day basis any more. Far better than my first offering
The VAT treatment in Xero can be triggered by the VAT code assigned to the transaction, and sometimes overridden by the classification attached to the nominal ledger code.
If you've posted the transactions as 20% (VAT on Income) and it's still posting to the wrong boxes, go back to the chart of accounts and reclassify the Income on Advance code as a current asset, and see if that sorts out the VAT. That will make any monthly management reports interesting but you can always change that description temporarily at the year end.
I'm not 100% certain that this will work, but it's worth a try
Looking for client money in the wrong account?