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michaelamherst
September 19, 2023
Question

Authors Averaging in Quickbooks

  • September 19, 2023
  • 1 reply
  • 0 views

I'm a writer and use Quickbooks Selfemployed to do my tax return. I've recently received an advance, further payments will come over the next couple of years. HMRC advise that I can use authors averaging to average out the income, as authors have lean periods and then income in bulk https://www.gov.uk/government/publications/averaging-for-creators-of-literary-or-artistic-works-hs234-self-assessment-helpsheet/hs234-averaging-for-creators-of-literary-or-artistic-works-2020. Can I use Quickbooks both to show this and input it to my self assessment form?

1 reply

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Mich_S
September 19, 2023

Hello there, michael. I'd like to share some insights about using Authors Averaging feature in calculating your income.

QuickBooks Self-Employed helps self-employed individuals track their income, expenses, mileage, and tax information. Nonetheless, your desired functionality is unavailable in the program. I recommend contacting your accountant to ensure proper record-keeping and maintain organized financial records.

 

For future reference, here are some useful modules about managing taxes in QBSE:

 

 

I'd be delighted to assist you further. Leave a question below, and I'll get back to you as soon as I can. Take care!

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michaelamherstAuthor
September 19, 2023

I don’t have an accountant as I’ve been using Quickbooks. 

Another question - I don’t seem to be able to edit the amount for business income in the app. Author income comes from an agency with their commission deducted. However, for the purposes of HMRC we need to declare the gross income with the commission deducted as an expense after. Is there anyway to edit the income figure? Or is something you’ll make available?

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SirielJeaB
September 20, 2023

Hello there, Michael! Thank you for getting back to the thread and sharing your additional questions. We are always available to help you clear things up.

 

Editing the business income amount isn't possible in QuickBooks Self-Employed (QBSE). However, we can update the amount by excluding the transaction that includes the commission. Then, manually re-enter the transaction without the commission fee and record the commission as a separate expense transaction. Here's how:

 

On a web browser

 

  1. Go to the Transactions menu.
  2. Find the transaction you want to exclude and select it to click the view.
  3. Select the Exclude this transaction checkbox.
  4. Tap Save.

 

To manually enter sales income and expenses, go to the Transactions menu, then select the Add transaction option.

 

Furthermore, we would like to direct you to these articles on managing transactions within your program:

 

 

If you have further questions or need assistance with any QuickBooks challenges, feel free to reach out to the Community. You can simply click the Reply button below or post in the Community again. Keep safe!

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