Finding out taxable income at the end of the year

[Maf. King]

On Thursday, 8 March 2018 06:38:23 GMT H0wdy wrote:
> Hello everyone,
> 
> 
> I do invoices throughout the year and have the income go to
> income:sales.  However, I don't necessarily get paid in full for the
> invoices, so at the end of the year, I cannot look in income:sales to
> determine how much taxable income I report, because it would include how
> much I'm owed also.
> 
> 
> As such, what is the best way to find out how much taxable income I make
> per year to report on my taxes?
> 

Hi,

This is the difference between "accruals" accounting and "cash" accounting. 

Basically, GC's invoice module uses accruals - the tax is calculated based on 
when you create the invoice, not when you are paid.

As a thought, you could look at total Income:sales, then (manually) deduct the 
balance of the A/R account on your reporting date - so if you have written an 
invoice for say £100, but only had partial payment of £75, sales should show 
£100 and A/R still show £25 as owing. 

HTH,
Maf.