Payments and receipts from previous accounting period (before I got Clearbooks)

Question asked by LJ Pritchard 5 weeks ago

Specifically asking with respect to the basic Sole Trader MTD package as the advice I see online seems to reference a higher tier or perhaps older version which have a different interface.

So I started my new tax year with Clearbooks in April and have invoices and bills from BEFORE then that have been paid in the new tax year and are being picked up in my bank feed. So, how do I:

  1. Explain an incoming payment against an invoice issued in a previous accounting period

  2. Explain an outgoing payment against a bill from the previous accounting period

Im sure it's simple but want to get it right!

Write reply5

5 Replies

Hi LJ,

Apologies for the delayed response, this post had slipped the cracks.

In this case, if you head to the Dashboard > Income/ Expenses > You can then click Create Invoice/ Create Bill. Once created, you can then explain the bank transaction by allocating it against the relevant invoice/ bill.

Tommy

Best answer
4 weeks ago

Thanks for your response - But the point here is that the Invoice / Bill are not on the clearbooks system because they belong to a previous accounting period on my old system? It's just the settlement has occurred in the new period.

Are you saying I create a copy of the original Invoice / Bill with a date PRIOR to my current Clearbooks accounting system and that will ensure it is not included in this year's income?

4 weeks ago

To try and clarify my question:

I started using Clear Books Sole Trader on 6 April 2026 and I prepare my accounts on the accruals basis. I have unpaid customer invoices dated BEFORE 6 April 2026 that were already included in my 2025/26 accounts. What is the correct way to record payments received AFTER 6 April without those invoices being included in my 2026/27 turnover?

Thanks

4 weeks ago

Hi LJ,

Thank you for clarifying. In this case, you must configure your account on the Accruals basis by heading to Dashboard > MTD for Income Tax > Click on Review beside Q1, then select Accruals in the Accounting basis dropdown.

Once completed, you can then head to the Dashboard > Income/ Expenses > You can then click Create Invoice/ Create Bill. Once created, you can then explain the bank transaction by allocating it against the relevant invoice/ bill. These will then be excluded from the quarterly submissions as they will be picked up on the invoice date.

Tommy

4 weeks ago

Thanks Tommy - beginning to make sense now.

4 weeks ago

Reply to this question

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are

Apps

Company

Social