Paying in advance

[bernesewalking]

I know this is a daft question but when a parent pays in advance which month do I put the payment in? I.e Mays money was paid at the end of April so do I put it in the month of Aprils account as that's when it shows on my bank records and just write money in advance or put it in my accounts book under May?

[fionamal]

Not sure how anyone else does it but if its for May then it goes into May even if they paid 30th April for example.

[bernesewalking]

Ok great thanks

[Ripeberry]

The invoice is for May so it goes into the May accounts :thumbsup:

[Chatterbox Childcare]

I invoice on the 20th of each month for money to be in my account for 1st of the following month but some payments always arrive early so I put the money in the month following my invoice. So invoice 20th May, payment comes in 27th May, goes in June's figures.

In truth it doesn't really matter as long as your deposits balance to your accounts apart from March/April. If I receive money for April in March I put the money in March figures and then do a journal showing the money out in the financial year and a journal credit in the following financial year.

That way I only pay tax on the current years money.

[Bluebell]

If I receive money for April in March I put the money in March figures and then do a journal showing the money out in the financial year and a journal credit in the following financial year.


That's what I do too :)

Rest of the time I just write (for my own benefit) the amount, the date it was paid and which dates it covers. Doesn't really matter which month it lands in.