Forum

• # 81568
• Wed 04 Apr 2012 08:28 PM

Hi all,

I'm having a blank moment! If for instance taking my own accounts as an example- I complete a clients accounts during one accounting period but finish them and invoice during the next, I have to account for the work I've completed during the first accounting period even though it has not been invoiced? I have a client who also has worked on a project for 3 weeks but hasn't finished or invoiced by year end-same issue?
Also is this the same issue that appears on the tax returns-you provide services under contract for proffessional or other services and these services span your accounting date? Because the examples above are not contracts as such.
I know usually we complete accounts on the accruals basis but I've got myself all confused :-(
Many thanks for your input in advance and sorry if its a silly question that I should really know the answer to!

Karen 

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• # 81808
• Wed 11 Apr 2012 08:56 PM

Hi karen75 I think you could account for this as work in progres. Hope this helps

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• # 81881
• Fri 13 Apr 2012 07:12 PM

Hi Karen,

Your accountancy bill would be considered a closing creditor as it relates in full to the financial year in question. The work your client has completed up to the end of the year is work in progress. For example, the year end is 5th April and a job was started on the 2nd April but completed on the 13th April, you would include the value of the work completed only from the 2nd to 5th April as work in progress.

I hope this helps? 

• Julie
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