Company accounts: end of year
Discussion
Our year ended 30/11 and I am just tidying up the accounts ready to send to my accountant, but wondered how to deal with those jobs that bridge the two years? Previously I have just made sure that they didn't by an almighty rush at year end but I am thinking there must be a proper way of doing it. So;
1) Worked carried out in the last few months of the year, costs (supplirs) incurred in that year but client not invoiced until the second year?
2) Work that crosses two years in terms of costs but invoiced in the second year? Difficult to attribute costs to one year or another as I don't know when the work was done, just when it was delivered.
3) Work carried out in year one, but costs not incurred by me until year 2 when the suppliers' invoices arrive and then invoiced to the client in year 2.
4) Work carried out in year one, invoiced year one but my suppliers don't invoice until year two.
Eric Mc said:
Smaller entities tend to perpetrate frauds in which income (and therefore profits) are UNDERSTATED as that tends to lead to lower tax bills.
Are they not deferring the liability into the next year as opposed to not declaring it?Edited by Eric Mc on Monday 3rd December 12:22
I have great problems telling when work was done. For example I invoice in January for work I paid my suppliers for in December ( for example telpehone interviews where the work wil be spread over 6 months), but which was actually done on my behalf in September (last year) along with some work in December (the second year).
I don't ask them when they did the work as long as they hit the deadline in December. In turn when I come to pass that work on in the new year, some of it I may have paid for in the old year, and some in the new.
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