Singing Pig

Hello

One of my web sites sells graphics for developers and takes payment via ShareIt! (or PayPal but that's not a problem). I price up in US$ but I'm paid in £ a month in arrears, so Augusts sales get paid in Sept and it's not until then that I receive a report showing the £ value of sales, orders just come through showing the $ amount. 

Therefore do I enter the sales when the order arrives and fill in the amounts later when I know them, which would be a bit of a pain, or wait until I receive my statement the next month that includes the £ values and enter them then a month after the order was placed? Or doesn't it make any difference?

Thanks

For your records it makes no difference.

For VAT it will depend if you are "cash accounting" or "accruals accounting". If you are cash accounting, then any VAT is due when you receive the funds.

For income tax you need to match the period of the sale to the accounting period. (accruals accounting) Ie March 2006 sales would be recorded in your tax year 2005/6 (which runs to the 5th April 2006) not 2006/7. this may mean you need to perform a year end adjustment when prepating your self assessment return.

Hope that helps and doesnt confuse too much!

Regards,