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Beginners CIS help please

Blonde AccountantBlonde Accountant Feels At HomeRegistered Posts: 86
Hi, I wonder if anyone is patient enough to help me please. I have just taken on a new client who is a ltd contracting company. I have never dealt with CIS before, so could anyone please give me basic instructions with how to deal with Supplier invoices that need CIS deducting and customer invoices when they are paid with the CIS deducted. I am using sage 50 accounts, but not with the cis add-on. I obviously know how to put sales and purchase invoices onto sage, but I don't know how to deal with the CIS aspect of it all. I know that this is a really big ask, but can anybody help please, I have been looking all over the internet, but in the end I thought this was the best place.

Thanks for reading

Nicola

Comments

  • Rozzi RainbowRozzi Rainbow Trusted Regular Registered Posts: 465
    Hi Nicola. I have never used Sage for this as all our sub/contractor clients are small enough to use spreadsheets for their bookkeeping. This is what I would do if I was using Sage, but someone may have a better idea. Use one of the bank accounts on Sage as a CIS account. When the Customer pays you (by "you" I mean your client) post the actual payment received to the bank account it is received into, and the CIS deducted as a receipt into the CIS bank account, this should ensure you have the correct figure on your Customer ledger. Likewise when you pay a Supplier, post the actual payment made from the bank account, and the CIS deducted as a payment from the CIS bank account, this should ensure your Supplier balances are correct. The balance on your CIS bank account (provided you have posted all CIS entries) should equal the total due to/from HMRC. When you pay/receive the money to/from HMRC, just post a bank transfer on Sage from the actual bank account to/from the CIS bank account. Hope this makes sense.
  • vickidmvickidm New Member Registered Posts: 12
    Hi Nicola, its a fairly easy process on sage. If you email me you details I can send you some info across. Theres a couple of ways you can do it on sage dependent if your client is accrual or cash accounting. I think I still have somewhere step by step instructions I drew up for an employee so happy to send across. Have finally shut lap top for the day though...so if you email me at [email protected] I will send it across.
  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    I also use the same method as Rozzi - set up a dummy bank account in sage called CIS account and use this to pay the CIS element to clear your supplier balances
  • Blonde AccountantBlonde Accountant Feels At Home Registered Posts: 86
    Thank-you everyone for the help, very useful and I have e-mailed you Vickidk-thank-you. :)
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