When a customer pays your invoice and you’ve connected your bank account/s, the money deposited will appear as a bank transaction in Business Finance Assistant.
If you use a separate invoicing system, Business Finance Assistant automatically creates a sales receipt for the transaction as a record of sale. It categorises the transaction as ‘Other Income’.
The sales receipt is presented as an option to manually match to the bank transaction.
You must set a VAT rate for this transaction and press the ‘Confirm’ button before it will appear in your VAT return:
- Go to ‘Bank Transactions’
- Populate the customer/supplier field
- Amend the category if required
- Select the correct VAT rate from the dropdown list
- Press 'Confirm' to mark the transaction as 'reviewed'
If you create and send invoices using Business Finance Assistant, payments deposited into your bank account will automatically be matched to the invoice and marked as paid. Watch our creating invoices video to find out more.
It is important to ensure that bank transactions have been matched to invoices correctly before filing a VAT return.