SAGE flat rate cost/benefit analysis

noodlesnoodles Trusted RegularRegistered Posts: 308
Does anyone use the new sage flat rate cost/benefit bit. From what I can work out, you need to enter the purchases NET and VAT in order for this to work, therefore do not see how this helps as you would then not have Gross expenses. Confused how this new item works, can anyone explain if they have used it already.........

Thanks

Comments

  • Rozzi RainbowRozzi Rainbow Trusted Regular Registered Posts: 465
    I haven't used it as we only have a couple of clients on the FRS and do their books by spreadsheet. In these cases, we state all purchases gross, and the sales as total income less flat rate % due to HMRC.

    I think the way Sage is set up suggests you calculate your input and output VAT as normal, with net sales and purchases in the accounts, then make an adjustment to alter the total VAT calculated this way, to the total due under the FRS. I agree this seems a bit of a roundabout way, as I always thought one of the advantages of the FRS is time saving as there are less VAT calculations.

    The total profit would still work out the same though under this system, but obviously all the sales and purchases figures are different. I think the idea behind it is to see clearly whether you benefit from FRS or not. However, I don't know how this would work when you came to generate your VAT Return as all the figures would be wrong for FRS, unless Sage has a way of adjusting for it.
  • noodlesnoodles Trusted Regular Registered Posts: 308
    decided not to use the sage benefit/cost system as it seems daft to enter it net, thought for a moment that sage had produced some great product ......................
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