At the moment as son as I create an invoice the VAT that i am charging is shown in the Tax payable account under Liabilities. Is there any way for the tax payable not to show in it’s relevant account until I get paid for the invoice.
Please see the below paragraph taken from the Irish Revenue which states that I do not become liable for the VAT until I receive payment from the customer. Similarly, can the same thing be done with VAT on purchase, i.e. that it doesn’t show under in the tax account until I pay the supplier.
Manager is an accrual accounting system. Transactions should be entered when they occur so the position of the company is accurately represented. Most sophisticated accounting is done on the accrual basis. The regulation you quote is about cash accounting.
Several of the key reports in Manager (P&L, Balance Sheet, and all the Tax Reports) can be generated on a cash basis. There is a dropdown box to select which form you wish. Simply Edit the appropriate report. The records are still kept on an accrual basis, but the reports are adjusted.