How do I change from Standard VAT to Cash Accounting?

If you want to change the set up of your Sage accounting system from Standard VAT to Cash Accounting for any reason, you must bring your records up-to-date to the end of the VAT period that you want to make the change from.

 

Then go to Settings and click on Company Preferences.

 

 

 

Click on the VAT tab and a window appear like this:

 

 

 

Click in the box for 'Vat Cash Accounting' and follow instructions.

 

You will need to check the Detailed VAT list carefully when you next perform your VAT Return to make sure that all your records are correctly included.  If you notice records that are not correct, use the Adjustments facility to correct your Return.

 

 

NOTE:

If you have entered any transactions past the date of the VAT period, Sage willl not let you change to Cash Accounting. You will get an error message saying that you cannot change while you have unreconciled VAT transactions.

 

It is possible to get round this problem if you have entered transactions past the date of the new VAT period -

 

Perform a VAT Return for the dates that you have entered records.  Then click on the 'Adjustments' button and adjust the entries on the VAT Return so that the VAT Return shows zero figures. Reconcile the Return.

 

Then go to Settings and Company Preferences and click to change to Cash Accounting and everything should be OK.

 

Continue to enter your records as normal.

 

Next time you perform a VAT Return, Sage will ask:

 

 

 

Click on Yes and continue with your VAT Return.

 

 

If there is a particular problem with using Sage Instant Accounts that you would like to see an article on, or perhaps you have a tip or a trick that you'd like to share, please contact us here and let us know.

 

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Other articles and links you may find helpful

• Exporting full Payroll information from Ava to Sage Payroll
• Exporting full invoice information from Ava to Sage Instant Accounts