Question asked by Katherine Naisbitt 7 years ago
I have a new client who has been using Clearbooks more as CRM than an accounting package for the past few years. They have done manual VAT reporting etc. However they would like to start using the system 'properly' as at 1.9.18. How can I close off the previous year ends and the VAT so they can start 'afresh' without losing all the data they have collated.
Hi Katherine
You could use the reset feature in Settings>Configure system to delete all the transactions but leaving supplier & customer data intact? Then delete all periods and start a new one from 1 September.
Alternatively, to clear out the VAT recording you should create a VAT return in CB up to 31 August with the "include late invoices" box ticked. Confirm the return and it will clear out all the VAT either to a bill to HMRC or to VAT payable account.
Then take a TB at 31 August and adjust it via journal, invoices, bills, credit noes, dummy bank entries etc, to create the balances you want at that date.
Then, in settings, lock the periods up to 31 August 2018 to prevent any further transactions going in
Best answerHad that been the case I would not have been asking for assistance.
Sorry Katherine but registering as an accountant I had assumed you were familiar with accounting basics.
I have to little to go on I'm afraid and so you are best raising a query directly with CB support or, the client's formal accountants.
Hi Paul
I really appreciate your time, however I am not a qualified accountant.
I have taken a TB but as I said they have not used the system correctly only as a CRM . They currently have only have a VAT balance and Sales balance which now after producing and paying the VAT bills leaves an incorrect bank balance.
I wanted to clear the VAT as they have been doing this manually.
I would just like to correct the bank balance, can you help or am I best speaking to their accountants and asking them to product the required journal?
Regards
Katherine
Hi Katherine
Per my original post, have you taken a TB from CB and compared it to the TB per the accounts? Do this then just create a journal and/or bills, invoices, bank entry to correct all the balances to the correct sums, the balancing amount will usually be to retained earnings.
Hi Again Paul
I have made the VAT payments from the normal account which has now put the account into a very large negative balance. I have the correct opening balance as at the 1st september.
Can you advise how my journal should be posted to get the correct bank balance as at 1st Sept please.
Regards
Katheirne
Hi Paul
Thank you
Hi Katherine
Yes you could do that but all that would do is transfer a false VAT liability to a false bank liability. So just use the ordinary bank account and enter another false entry to create the correct bank balance at 31 August, ie as mentioned above to create the correct TB at that date.
Hi Paul
Thanks for the advice.
I have produced the VAT and would like to 'clear' the bill so it does not show as outstanding anymore, I was going to add a dummy bank account as this information is not required, and pay through that what would you advise?
Regards
Katherine
Hi Katherine,
In this instance, your best option would be downgrading the subscription to dormant which will allow read-only access to the account while you still require access to this information in the system and starting a new account/subscription.
It is difficult to cherry pick the information that you would/wouldn't like to include. So starting a fresh account allows the fresh break and start to begin on solid foundations. You are able to transfer information such as Customers and Supplier using our import and export features.
If this raises further questions do let me know?
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