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 'Confirm' the transaction before it will appear in your VAT return:
- Go to the ‘Bank Transactions’ screen
- Populate the 'Customer' field
- Amend the category if required
- Select the appropriate VAT rate from the dropdown list
- Press 'Confirm'
- The transaction will be shaded in green once it's confirmed/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 be 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.