Regarding the sales tax report, could you tell me the difference between the cash and the invoice filter? as I am trying to determine what are my total tax paid & owed amounts? thanks

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Regarding the sales tax report, could you tell me the difference between the cash and the invoice filter? as I am trying to determine what are my total tax paid & owed amounts? thanks

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Peter Connor ⋅ Staff February 5, 2016
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Hi,
Sales tax is usually calculated in two different ways.
Invoice: When the invoice is issued the seller (you) have to pay the VAT on it regardless of whether the bill has been paid or not. 

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  1. Peter Connor February 5, 2016
    Cash: When the VAT is owed when you've been paid the money.
    99% of companies (bar large ones) operate on a cash basis, as in you only pay the vat when the invoice is marked as paid.
    Does that make sense?
  2. david34 February 5, 2016
    ya makes perfect sense, thank you very much, i was worried that it was some sort of subdivision and i was unsure what one to use
  3. david34 February 5, 2016
    thanks very much, i shall fall inline with the 99% so and use the cash system
  4. Peter Connor February 5, 2016
    Deffo. The invoice system like a lot of accounting is really designed for Big Corporates that want to shift tax liability.
    Cash is much better and the only way to operate for Small Business, esp with now slow people are to pay.
    Pete
  5. david34 February 5, 2016
    thanks again pete, by the way bullet is is brilliant, i absolutely love and cant stop telling people about it, david :)
  6. Peter Connor February 5, 2016
    Great David. Glad you like it, it was built by Potato munchers - so there must be something in the starch smile
    Any questions shoot them here - or if you think we could do something better.
    Thanks for being part of the community.
    Pete

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