Charity Accounts Query

mark057
mark057 Trusted RegularRegistered Posts: 354
Hi,

I'm helping a not for profit organisation out with there accounts at the moment.

I'm just wondering if anyone can offer some advice about the recognition of expense?

The problem I'm having is that the FYE occured on the 31st March 2009. We have been receiving purchase invoices all through April and I have been recording all April invoices into the April 09 month in the accounts.

I was told today that some of the April dated invoices need to be moved back to March 09 because the expense relates to a service provided in March 2009.

This seems crazy to me because surely all expenses should be recorded into their respective months according to invoice date with the exception of obvious accruals and prepayment expenses.

I've looked in a charity accounts book and the book seems to agree.

Help anybody?

Mark

Comments

  • Gianni
    Gianni Feels At Home Registered Posts: 99
    Agreed, you accrue the expense not bring the invoice forward.

    This is not only technically incorrect but it'd result in your VAT return being incorrect (assuming VAT registered).
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