Part of the questionnaire you complete for your accountant is to list all Accounts Receivable (Debtors) and Accounts Payable (Creditors). They will also be able to view this information in Farm Focus.
If these items are recorded accurately in Farm Focus, they will be included in the Accountants Annual report which your accountant will use to prepare your end-of-year accounts.
What are end of year Accounts Payable and Accounts Receivable?
End of year Accounts Receivable
Amounts that are owed to you at the end of the financial year i.e. livestock sales and milk income.End of year Accounts Payable
Amounts that are owed by you at the end of the financial year i.e. your vet bill or trader statement.
So that you can account for the items correctly you need:
An invoice dated in the previous financial year that is,
Matched to a bank transaction with a payment date in the current year.
TIP: This is an easy process when you use the Invoice Scanner to automatically bring invoices into your farm business.
Record financial year transactions in 3 easy steps
When you receive the invoice, use the Invoice Scanner to automatically import it into your farm business.
The invoice record in your Needs Action screen should already display the invoice date, other party and amount from your invoice. All you need to do is code it.
When the bank transaction arrives, match it to the corresponding invoice
BONUS: Your accountant will also be able to access a digital copy of the invoice from the matched bank transaction!
TIP: When recording livestock-related sales & purchases the event date determines the financial year that it belongs to. This means you can either follow the steps above, or record everything on the bank transaction.
Manually change the invoice date
If you have not used the Invoice scanner and have past transactions which have been coded and completed, you have the option to add an invoice date to these transactions.
Click here to learn more.
End of Year Accounts
Once you have accounted for all invoices and receipts they will appear in the Accountants Annual Report under Section 5: Workpapers for balance sheet.