I have only just started using Quickbooks, previously having used Sage. The problem that I have at the moment is that I changed over at the end my last VAT quarter, at the end of our company accounting year, the return being submitted to HMRC manually using the figures from Sage. I then had to make the payment, which I had to enter into Quickbooks to keep bank balance correct, this being in the VAT Suspense account. Whilst my current VAT return is correct, my balance sheet is now wrong, it now shows up as a negative figure in my current liabilities. How do I clear this without effecting the rest of the accounts?
Is there anyway of entering, for want of a better word, an opening balance on the VAT Suspense account?
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The best way to record a payment from a VAT period before you used QuickBooks would be a one off expense. Rather than using the VAT Suspense account, you would need to create an expense account and post the payment to this - this will record the transaction but also ensure it is not affecting the VAT accounts that are designed purely for filings through QuickBooks.
Thanks for the reply.
So, I have created an expense account in Taxes Paid, calling it VAT Prior to Quickbooks, just so that I remember what it is when our accountant asks me at the end of our financial year. Then I edited the entry for the payment in the chart of accounts, changing the category from VAT Suspense, thus it does not show as an asset balance sheet and has reduced the profit and loss figures. So I guess that it has worked!
Presumably, next year I can remove this expense account as it will not longer be required and it should have cleared of all entries. Then everything will be back to normal.