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karenwelch2
April 16, 2018
Question

reconciling vat

  • April 16, 2018
  • 2 replies
  • 0 views

hi guys

 

does anyone have a easy step by step instruction on how to reconcile my annual vat ?

 

there doesnt seem to be a tool for it on qb online .. or am i missing something..

 

i have about 200000 entries for the year and my accountant has said that they can reconcile it but will charge hundreds !!

 

i have all the quartely return info and payments obviously in qb but i dont understand how it is reconciled..

 

presumably the purpose is to check that nothing additional has been added or removed which would skew the vat reurn quarterly figures ?

 

thanks loads

 

karen

 

 

2 replies

AshH
AshH
April 17, 2018

Hi Karenwelch2.

 

Thanks for getting in touch with the Community, hopefully I can help.

 

This is a bit of tricky one, in terms of reconciling a VAT account this isn't really something you would do as the VAT control account would be a collection all transactions with VAT associated and totals.

 

The reconcile you would normally do would be of the bank account/s that you use to record your transactions. This would just be to make sure that your QuickBooks and bank account matches. Generally we would recommend doing this at regular intervals throughout the year to make sure everything balances, this would also make it easier to find any discrepancies should they arise.

 

Once the actual bank accounts have been reconciled, this will confirm that there are no duplicate, missing or additional transactions that could potentially be affecting your VAT return totals. If there are missing or additional transactions then there may be missing or additional VAT values included in your returns.

 

Your accountant would be able to help by doing a mass reconcile if this has not already been done which would alert to any discrepancies. If any do arise they would be able to journal this out to a discrepancy account. Use this link as a guide to reconciling your accounts but if there is anything else I can help with, let me know.

 

 

 

K
karenwelch2Author
May 2, 2018

Thanks Ash 

 

Excuse my stupidity but I dont use QB to submit my VAT return i do it manually on HMRC gov gateway..

My accountant has asked me where i have posted the bank quartely payments for vat and i havent made an entry..

i guess this completely throws my supposed bank reconciliation ?

 

am i meant to do it like this :

 

for example qtr 2 vat to pay over is £2k 

do i post a journal entry crediting bank and debiting vat control account ??

 

surely the vat control account is where all the debits and credits of vat collected and due go?

 

 

i am so confused !!

 

help please ;)

 

i am already 3  months behind with these accounts and have about 400 quid fines so far 

 

cheers

 

karen

A
Anonymous
May 3, 2018

Hi Karen,

 

I can offer clarity here.

 

When you account for VAT within QuickBooks Online, the amounts are assigned to the VAT Control account until you file and close a VAT period within QBO. At this point of marking the period as filed, the amount due on the return is moved into the VAT Suspense account and all payments/refunds are record through the Suspense account.

 

Check with your accountant how they wish for you to record the payments and filings made so far if you are not using the VAT system within QBO to file your VAT and confirm which accounts they wish you to use on the journal you mention.

 

To assist in using the VAT centre if you are using QBO to mark VAT as filed with HMRC, you can have a look at our handy Community article.

 

For guidance on recording VAT payments, we also have a handy YouTube video taking you through the process to settle the Suspense account.

 

Let me know if you have any further queries

EmilyMockett
EmilyMockett
April 17, 2018

Hi Karen,

 

Alongside Ash's answer I would also recommend taking a look at the VAT Detail report and checking this.

 

Kind Regards,

 

Emily

K
karenwelch2Author
May 2, 2018

Thanks Ash & Emily :)

 

Excuse my stupidity but I dont use QB to submit my VAT return i do it manually on HMRC gov gateway..

My accountant has asked me where i have posted the bank quartely payments for vat and i havent made an entry..

i guess this completely throws my supposed bank reconciliation ?

 

am i meant to do it like this :

 

for example qtr 2 vat to pay over is £2k 

do i post a journal entry crediting bank and debiting vat control account ??

 

surely the vat control account is where all the debits and credits of vat collected and due go?

 

 

i am so confused !!

 

help please ;)

 

i am already 3  months behind with these accounts and have about 400 quid fines so far 

 

cheers

 

karen

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