I am complete new in accounting. Could someone explain me Accruals Basis Tax.
My understanding is that Accruals Basis taxes are added at a time when invoice get’s paid i.e. money reached bank account.
- I created report for Tax Report For the period from 1 Nov 2016 to 31 Jan 2017
- I have invoice issued on 29 Oct 2016
- Invoice got paid on 19 Jan 2017
I did assume that invoice should be included into tax transactions/summary because paid date is in period but it is NOT.
If I change invoice date from 29 Oct 2016 to 1 Nov 2016 it will be on report.
Is it bug in system or that’s how it should work?
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