Hi, We are thinking of starting a new QBO file. I have read couple of forums and they suggest NOT to open balances of customers with pending invoices and same as for the supplier as it will bypass P/L and affect the equity account in the balance sheet. Now in order for us to re-enter the open invoices of customers and open bills to be paid, how will it effect the VAT, because we are running on accrual method, and the taxes for the invoices are already paid in the period they were recorded and claimed against bills in that period. Now if we go on re-entering the same, the taxes will show up to be re-paid. How do we avoid this situation as to not effect our petty cash. We want a neat start to our new QBO file... Thanks.
