Quickbooks initial setup and my accounting year

[Sagey]

Hi, I couldn't find an answer especially as my question is more specific to my business.

I've just signed up for quickbooks to do my accounts from Aug 2019 to Jul 2020. All I have at this stage is a lot of set up costs (building, renovation etc). Not been able to actively trade, so no sales. Where can I find tutorials to get started here?

I also have incurred a lot of VAT from the renovations (i'm VAT registered) which I'm now trying to claim back. My claim months are Nov, Feb, May, Aug. So spanning my previous and current financial year. Where to start? Can someone kindly break it down, so I can understand what I need to do?

 

[Scalloway]

Your Quickbooks must be set up with a financial year of 31 July.

It's a few years since I did this myself. Have a look at here to see if it helps.

https://quickbooks.intuit.com/learn...vat-quarter-dates-to-co-inside-with/00/238609

 

[MyAccountantOnline]

Hi, I couldn't find an answer especially as my question is more specific to my business.

I've just signed up for quickbooks to do my accounts from Aug 2019 to Jul 2020. All I have at this stage is a lot of set up costs (building, renovation etc). Not been able to actively trade, so no sales. Where can I find tutorials to get started here?

I also have incurred a lot of VAT from the renovations (i'm VAT registered) which I'm now trying to claim back. My claim months are Nov, Feb, May, Aug. So spanning my previous and current financial year. Where to start? Can someone kindly break it down, so I can understand what I need to do?

I've used QuickBooks in the past I wouldn't say it's the easiest software to set and and use if you are doing it entirely on your own. Are you fully committed to using it now?

 

[Spur Support Services]

VAT on property is a bit of a mare.
You really should approach all property VAT with extreme caution and enlist the help of a tax specialist. Tax expertise isn't cheap, but your starting assumption for VAT on renovating an existing building should be that none of it is claimable.

With the software side, if you are committed to Quickbooks, then find a Quickbook specialist. (sorry I'm Xero). All you periods fall within the MTD (Making Tax Digital) timeline.
In my opinion, using VAT MTD is especially important if you want to self service your VAT Returns, as it is so much easier to review exactly what is included in each return, which makes it easier if any queries arise.
You'll need to register with HMRC for VAT MTD through your HMRC Government Gateway account.
https://www.gov.uk/vat-record-keeping/sign-up-for-making-tax-digital-for-vat

Once you have applied, it will be easy to link Quickbooks, via the software (again that's from my Xero experience, but I would hope that they will be broadly similar).

However, I can't stress enough, VAT and Property is a minefield. Get help or be prepared for HMRC challenge and potential disappointment.

 

[Sagey]

I've used QuickBooks in the past I wouldn't say it's the easiest software to set and and use if you are doing it entirely on your own. Are you fully committed to using it now?

Just have the trial for now, I think as I use it more and familiarise myself it should get easier.

 

[MyAccountantOnline]

Just have the trial for now, I think as I use it more and familiarise myself it should get easier.

I would try a few to see which you prefer and which best deals with your requirements.

Bear in mind software is offered free with some banks (FreeAgent is one) and often accountants can pass on discounts on some too.

 

[Sagey]

VAT on property is a bit of a mare.
You really should approach all property VAT with extreme caution and enlist the help of a tax specialist. Tax expertise isn't cheap, but your starting assumption for VAT on renovating an existing building should be that none of it is claimable.

With the software side, if you are committed to Quickbooks, then find a Quickbook specialist. (sorry I'm Xero). All you periods fall within the MTD (Making Tax Digital) timeline.
In my opinion, using VAT MTD is especially important if you want to self service your VAT Returns, as it is so much easier to review exactly what is included in each return, which makes it easier if any queries arise.
You'll need to register with HMRC for VAT MTD through your HMRC Government Gateway account.

Once you have applied, it will be easy to link Quickbooks, via the software (again that's from my Xero experience, but I would hope that they will be broadly similar).

However, I can't stress enough, VAT and Property is a minefield. Get help or be prepared for HMRC challenge and potential disappointment.

Apologies, when i'm referring to property i'm just meaning the pre

 

[Accounting Controls]

Sage is much more straight forward. You have to ensure that your costs are placed in the right nominal code areas and that your VAT tax codes are set up correctly. Whether you are are using QuickBooks or sage the same applies.

 

[GLAbusiness]

Sage is much more straight forward.

It may be to an accountant but not for a SME business user. I moved from sage to FreeAgent a good few years ago and there is no comparison. FreeAgent is just so much more business oriented.

 

[Philip Hoyle]

I'm afraid all software is going to give you the same problem of having a VAT period end that doesn't coincide with the company accounting year end, which seems to be your main issue from how I read your post. Another issue is that you've presumably already done your VAT returns for the 19/20 year, so are basically just wanting to use Quickbooks for the annual accounts. That will also pose some issues as you may find the VAT quarter calculations in QB don't match your actual VAT returns. Whatever software you use, you're going to have your work cut out to get the opening position right and then get the VAT to balance.

To be honest, I think I'd shelve QB and do the 19/20 year on something a lot simpler, maybe the desktop VT transaction program, if all you're wanting to do is the 19/20 accounting year end. It will be a lot quicker/easier to enter the data and balancing/adjusting it to match your VAT returns will also be simpler.

Then start QB with effect from 1/8/20 for the 20/21 year if you really want to use it.