Creating Invoice On Payment - VAT

[Paul Kelly ICHYB]

One of my businesses is on the verge of hitting the VAT limit.

Running events, I invoice exhibitors circa 3 months before the event with a payment date one month before. I currently use cash accounting, so the VAT would not be counted until paid, however, if I go flat rate, I will have to use accrual accounting, which does shift the cashflow a bit.

Is there a system where I can create a booking (pro-forma/quote?) with a payment link, and when paid, an invoice would automatically be created?

 

[MyAccountantOnline]

One of my businesses is on the verge of hitting the VAT limit.

Running events, I invoice exhibitors circa 3 months before the event with a payment date one month before. I currently use cash accounting, so the VAT would not be counted until paid, however, if I go flat rate, I will have to use accrual accounting, which does shift the cashflow a bit.

Is there a system where I can create a booking (pro-forma/quote?) with a payment link, and when paid, an invoice would automatically be created?

One option - it's not fully automated but does what you want - https://support.freeagent.com/hc/en-gb/articles/28015556796946-Create-a-pro-forma-invoice

 

[Data Swami]

One of my businesses is on the verge of hitting the VAT limit.

Running events, I invoice exhibitors circa 3 months before the event with a payment date one month before. I currently use cash accounting, so the VAT would not be counted until paid, however, if I go flat rate, I will have to use accrual accounting, which does shift the cashflow a bit.

Is there a system where I can create a booking (pro-forma/quote?) with a payment link, and when paid, an invoice would automatically be created?

There are a couple of options for you to use here. Invoice Ninja is apparently a light weight option that you could even host yourself never tried it though. Zoho Invoice is free for UK and VATable which does the quotes like you want too and then converts to invoice on payment. Square Invoice does something similar too and I think is free too but i think their paid version does the auto converstion of estimates. Or just use a Stripe payment link as a quote and then once its paid it creates that invoice too

 

[Paul Kelly ICHYB]

Free agent - just been playing with that (free account I don't use..yes). I should have mentioned, having a click to pay option was what I was after, which the accounts systems I have seen don't offer on proforma/quotes.

I will look at Zoho/Ninja.

I use Kashflow at the moment and it it does a greta job, but not my new requirement.

Maybe I just need a feature added to my WP accounting plugin!

 

[Data Swami]

Ahhh ok even a stripe payment link could facilitate that then too

 

[Paul Kelly ICHYB]

Yes, but that is an additional step/activity. Invoices would have the payment link included.

Not sure if what I want is an acceptable accountaning practice, as far as I am aware, people pay pro-forma invoices and then get a paid invoice.

 

[Data Swami]

Yes, but that is an additional step/activity. Invoices would have the payment link included.

Not sure if what I want is an acceptable accountaning practice, as far as I am aware, people pay pro-forma invoices and then get a paid invoice.

So do you mean in the quote you send it just has a payment link?

 

[Paul Kelly ICHYB]

Yes. Then, ideally, when paid, an invoice is created.

 

[Data Swami]

Yes. Then, ideally, when paid, an invoice is created.

ok cool ye i think a couple of those options give that but then if you can add it to your WP plugin then i guess most of that gets away from subscriptions. Or even integrate that stripe payment link as it does create the invoice once paid alongside tax statements etc

 

[Ziggy2024]

Why do you need to use accruals accounting with FRS?

 

[Paul Kelly ICHYB]

Because that is a requirement, isn't it?

Flat Rate Scheme for small businesses (VAT Notice 733)

Find out how to use the Flat Rate Scheme, who can use it and how to apply to join the scheme.

www.gov.uk

 

[Ziggy2024]

Because that is a requirement, isn't it?

This is the guidance (in the link you posted):

You cannot use the scheme with the Cash Accounting Scheme. Instead, the Flat Rate Scheme has its own cash-based method for calculating turnover

In reality there's not much difference between cash accounting and FRS cash accounting.

 

[Paul Kelly ICHYB]

Oh, that's good to know.

Thanks.

 

[chenmichael]

You could also look at an Open Banking payment setup — it can give you a payment link while automatically feeding the payment confirmation back into your invoicing/accounting workflow. That would avoid having to manually check whether the pro-forma has been paid before creating the invoice.

 

[Newchodge]

You could also look at an Open Banking payment setup — it can give you a payment link while automatically feeding the payment confirmation back into your invoicing/accounting workflow. That would avoid having to manually check whether the pro-forma has been paid before creating the invoice.

What is open Banking and why do you plug it in every post?

 

[chenmichael]

What is open Banking and why do you plug it in every post?

My bad, it's just a topic I am knowledgable about and most posts I happen to have an advice for was related to it.

Those apis just make anything payment or account related work easier for businesses.