Accountability Edinburgh

Here's a Xero tip for anyone that wants to recharge expenses.

Say, for example, you manage a portfolio of short term property lets. Part of your service is to replace the odd toaster, buy toilet rolls - or get a washing machine serviced.

It can be tricky to remember to charge those costs on to clients. You've either got it in your head, you're running a spreadsheet or you've got some other list.

When you enter the bill for the purchase to Xero, select the button “Assign to Project or Customer”. Choose “Customer” and select the appropriate client.

When you come to invoice that customer, you’ll get a prompt - to add all the costs you’ve incurred - with the option to add to your invoice.

No more accidentally paying to service someone else’s washing machine, no more free toilet rolls.

It’s easy - and saves you time and effort 🤩

And if you really want to supercharge - combine this with tracking categories by property reference and then you’re flying ✈️

And this can be applied to loads of industries. Wherever you’re billing on costs incurred to a customer.

Picture of some of the team at the Accounting Excellence Awards last year where we WON Bookkeeping Team of the Year – so you know we know what we’re talking about 😉

Our year with Cancer Card 💛

https://www.accountabilityedinburgh.co.uk/blog/charity-partnership-cancer-card-accountability-edinburgh

In our latest blog, we talk about what we've got up to throughout our charity partnership. Our Community Champion, Jill, perfectly summed up what this partnership has meant to us:

“Cancer Card is an incredibly focussed charity which has helped so many people find the support they need when they are diagnosed with cancer, and we have been very privileged to be able to help them over the past year as our charity partner.

As a small office, many of whom work from home, we have all enjoyed supporting Cancer Card over the last year. I personally loved walking the Kiltwalk for the charity, marching through areas of Edinburgh and East Lothian I hadn’t been to before and being greeted by Lorraine and Gordon at the end.

The April Challenge was great fun, and we managed to raise a lot of money through some fun office missions! The swear/sigh challenge in the office was great fun as well as we quickly realised we all did both more than we thought and took great pleasure in ‘clyping’ on each other. The step challenge was taken seriously, and the team managed to walk an eye-watering 2,315,106 steps in April, averaging 9,646 steps per day - that’s a lot of walking!”

What's next? We’re now looking for our Charity Partner for 2026/27. If you’re a charity and would like to apply, we’d love to hear from you – details via the link below!
https://forms.cloud.microsoft/e/CjEKLZXeZ4

My accounting software handles my VAT Returns, I just press submit each quarter 🚩

Reality: The accounting software can calculate the VAT, but only if the data is entered accurately.

For example, Jimmy is a sole trader and runs a construction business. He does his own bookkeeping and uses cloud software to submit his VAT returns. No accountant, no checks - just a few clicks each quarter.

The issues:
🫣 VAT claimed on business entertainment
🫣 VAT claimed on personal expenses paid with the business card
🫣 International software subscriptions incorrectly treated
🫣 Sales invoices missing VAT, even though they were standard rated
🫣 A duplicate supplier invoice - doubling the VAT claim
🫣 VAT applied to unclear transactions without proper documentation

The Risk:
😖 Inaccurate VAT Returns
😖 Overclaimed input VAT
😖 Risk of HMRC penalties or investigation

Here’s what we would put in place
✅ Correct VAT codes for all affected transactions
✅ Amend previous VAT returns
✅ Set up rules and checks on recurring transactions to ensure consistency
✅ Introduce monthly bookkeeping reviews
✅ Deliver training for Jimmy to understand how to use his software confidently and correctly

Pressing “submit” is the easy part. It’s knowing what you’re submitting that really matters. Accounting software doesn’t question if an expense is personal, if reverse charge VAT applies, or if something is missing. It only processes what it’s given.

That’s why training is essential. When you understand how to use your accounting system properly and what HMRC expects - you reduce risk, stay compliant, and take control of your finances with confidence.

Do you need help with your finances? At Accountability Edinburgh, we offer Xero training and health checks to make sure your books, and VAT returns, are clean, correct, and compliant.

Prefer to focus on running your business without worrying about complex VAT rules? We also provide bookkeeping services and can manage your VAT returns for you, giving you peace of mind and more time to grow your business.