Loading Profile...
Claiming expenses dated before company formation
I'm just getting organised for my first set of company accounts and I've run into a slight hitch which I'm hoping someone can help me with in return for a mince pie and a large sherry.
My ltd. company formation date is 8th May 08. I spent £130.09 on expenses on 1st May 08 and added them to FreeAgent with that date under My Money/Expenses.
When I look at the balance sheet at 31st May 09 it says it doesn't balance by £130.09. Looking at the opening balance, everything's 0 except for my expense account liability which is 130.
I'm guessing this confusion arises from me claiming expenses with an invoice date earlier than the company start date but I'm not sure how to fix it. Anyone who can point me in the right direction will have my eternal gratitude (as well as the mince pie and sherry).
Thanks
Simon
My ltd. company formation date is 8th May 08. I spent £130.09 on expenses on 1st May 08 and added them to FreeAgent with that date under My Money/Expenses.
When I look at the balance sheet at 31st May 09 it says it doesn't balance by £130.09. Looking at the opening balance, everything's 0 except for my expense account liability which is 130.
I'm guessing this confusion arises from me claiming expenses with an invoice date earlier than the company start date but I'm not sure how to fix it. Anyone who can point me in the right direction will have my eternal gratitude (as well as the mince pie and sherry).
Thanks
Simon
I’m confused and bewildered
1
person has this question
I have this question, too!
Tell me when someone answers.
The more people who ask this question, the more it gets noticed.
The more people who ask this question, the more it gets noticed.
The company marked this question as answered.
-
Inappropriate?Hello Simon,
I'm FreeAgent's in-house accountant - may I help (and it won't even cost you a mince pie and a sherry :-) ).
What you need to do is to take out the expense liability balance, because it sounds like you've put this in under Users?
To take this out, click Users, click on your name and change the Expenses figure to 0.
Your trial balance should then balance.
Could you let me know how that goes, please?
Kind regards,
Emily
I’m hopeful
1 Comment
Add a comment
This answers the question
-
Hi Emily,
Thanks for your quick reply. You're right - I had put the £130.09 under my opening expense balance and I've just taken it out. Now everything balances and, if I look at my list of expenses for 08/09, the opening balance is £-130.09 then the expense for the same amount is shown on 1st May which make the balance owed £0.
This is a bit confusing because surely I should be owed £130.09 after that expense has gone out? -
Inappropriate?Hello Simon,
What I would do to avoid this view is to re-date your expenses as 8th May 2008 (your company start date). Then you should see them showing as owed to you rather than showing as negative and then 0.
Does that help, please?
Kind regards,
Emily -
Inappropriate?Rather than unlocking every VAT period so I can change the date on the expense, would it make anything other than a cosmetic difference if I just left it as it was? My only concern really is making sure that all the numbers add up before I hand everything over to my accountant to do my return.
I've attached a screenshot showing what's happening at the moment...
-
Inappropriate?Hello Simon,
No, it shouldn't make any difference other than on this screen if you leave the dates how they are.
If your accountant has any queries when he/she checks your records, then do please feel free to put him/her on to us.
Kind regards,
Emily
1 person says
this answers the question
-
-
Inappropriate?Hello Simon,
No problem at all. If you have any further queries, please don't hesitate to come back to us.
Kind regards,
Emily
I’m happy
EMPLOYEE
