How to record receipts in advance of the new financial year?

Hello Info-littleousem. Welcome to the Community and Quickbooks! Just to confirm in February when you invoice for the year you want the full amount to show in April as a sale for the new financial year is that right? Are you on the cash or accrual method for your accounting?

Yes - want the sale in the new financial year.  
Use cash method

Thanks for confirming, info-littleousem.

I can guide you in recording receipts for the new financial year.

Since you're using cash method of accounting, you can just enter the date under the new financial year in your transactions.

Here's how:

1. Click on the + New button and select Sales receipt.
2. Fill in the details on the form.
3. Enter the details on the Memo section of when the event occurred.
4. Select Save and close after reviewing the details on the form.

You might want to check this link to understand the difference between cash and accrual accounting methods: Cash vs. accrual accounting: What’s best for your small business?

If you have other questions on future tasks, feel free to access our Help Articles.

Keep in touch if you need any more assistance with managing receipts, or there's something else I can do for you. I've got your back. Have a good day.

Thank you for your reply but I do not think you have understood my question

Thank you for you reply but this does not answer my question.

Ordinarily when I raise an invoice the payment is captured when it is recieved. - cash method however I have an issue with those invoices which are pre payments for services in the following financial year and need to accounted for in the following financial year and not when they are recieved.

Example - I have raised invoices in Feb 2021 for the rental period April 2021 to March 2022.  My financial year begins in April 2022.  Most of the rental is received prior to April however it has always been accounted for in the following financial year (ie April 2022)as this is the period to which it relates. Can you tell me the best way to deal with this?

I raise the invoice, the match the amounts on quickbooks when they are recieved.  Do I raise the invoice differently or match the invoices differently or how do I make an adjustment every year?

it relates

Hello Info-littleousem. If you are matching the payments during 2021 for example for payments received up to March 2022 on the invoice raised in Feb 2021 as your method is cash based as soon as you record the payment it will count as income for that financial year. If you do not want to show this as income to the business income till 2022 then there are options.

Such as receiving the payments but not linking them to an invoice. Do a bank deposit in the cog for that amount and in the account select the customer and the accounts receivable(debtors) chart of account as being the account. Essentially the customer will appear in credit and the bank account will be correct. You can then allocate them to the invoice when you need to for April 2022.

You could set up an asset and receive the payment to the asset account and then transfer that back to pay the invoice(as you have to account for the money in somewhere else if it is not income). That would impact your balance sheet though. You could do a journal showing the receipt of money and then post it where you want it to be till you move it to income.  As you have the money in the bank prior to April 2022 it would be a case of deciding how you want it to be recorded in your books because if it does not show in income it has to show someone else, as an unapplied payment/credit or as a different chart of account such as asset /equity, etc that which is more of an accountant question. we can then advise how to record that in Quickbooks above are just some ideas but we'd really recommend asking an accountant for advice.