Invoicing and Book keeping

[toddlers896]

Most of my customers pay me in arrears so it's very simple at the end of the month I add all the payments up and this is what I have earned for That month.

I have a new one that is going to be paying me in advance. So they will pay me on the same day as everybody else but instead of being invoiced for August like everybody else they will be invoiced for September.

I do my book keeping at the end of every month as I like to keep on top of it so will my new advance payment be added onto August or September ?

Sorry Becky, I know you told me the answer to this but somebody else gave me the opposite answer and I just wanted to see what others thought. I don't suppose it matters as long as it adds up at the end of the year but I do like to do it monthly.

Thanks x

[KateA]

Hi,

I would say if the fees are for Sept I would put them in the book for Sept. I only take payment in advance and thats how I do it.

x

[AliceK]

Now I do it the opposite. I put the amount in on the day I receive it so all my parents pay in advance so Septembers payments will (should) be with me by 29th August so providing parents money comes in on that day then that is the day I will log it in my accounts.

xx

[Simona]

Most of my customers pay me in arrears so it's very simple at the end of the month I add all the payments up and this is what I have earned for That month.

I have a new one that is going to be paying me in advance. So they will pay me on the same day as everybody else but instead of being invoiced for August like everybody else they will be invoiced for September.

I do my book keeping at the end of every month as I like to keep on top of it so will my new advance payment be added onto August or September ?

Sorry Becky, I know you told me the answer to this but somebody else gave me the opposite answer and I just wanted to see what others thought. I don't suppose it matters as long as it adds up at the end of the year but I do like to do it monthly.

Thanks x

As you can see from the replies we all do things differently...some prefer to be paid in advance so we have money for buying food in advance ...for example...as it would make you out of pocket otherwise if you have many children

If it suits you to invoice in arrears that is OK ...if this parent is paying you ...say on 1st Sept...that will be your September fees
If the parents use you for extra hours...or you have to add extra services then add them to the Oct invoice....

it will make no difference to your annual income when parents pay when you come to do your end of year accounts as you include 12 monthly payments
Good luck

[Kiddleywinks]

In another life I was VAT registered and had customers that had a 'tab'
When doing our accounts, all invoices issued were accounted for on the date of issue, rather than when they were actually paid for.

With this line of work, I log all payments for the day they are made, regardless of the time period they cover (the following week/month)
I issue a statement kind of invoice for parents records, showing the previous months balance, payments received, and the following months fees due.

[alex__17]

I have been wondering this lately too and using an excel spreadsheet that someone posted a link to which was great.
What I was wondering is for april I get paid in advance at beginning of the month usually around the 1st, so would the payments for april paid at beginning of month count as this or last tax year?! They'll be paid to me last tax year, but covering next tax year and if they count for last year it would mean I'd not have an income for April this year...think I'm confusing myself thinking about it!

[Kiddleywinks]

It would make a difference if you were vat registered

Each financial year you will receive Aprils fees in March, so it balances itself out ;-)