One of Amilia’s biggest enhancements of 2017 was the introduction of mandatory ledger codes and reconciliation. Since last July, reconciliation is done by invoice item. For those who are unfamiliar with the term, reconciliation by invoice item allows you to link each of the payments made with each item present on an invoice.
Throughout this article, you will learn best practices for reconciliation, so you can get through your tax season worry free.
How to get ready for RL-24s?
Reconciliation is the process of association between payments and sales, previously reconciliation was done by invoice and not by article (item). This new way of doing it allows you to know exactly which item has been paid and thus generate accurate RL-24.
To get started, make sure your invoice items are all reconciled. We have 2 ways of doing this:
- Complete the reconciliation of all accounts (including invoices that are not eligible for RL-24). It is possible to reconcile those items, under the tab Clients > Unreconciled items, this tab lists all the items that have not been reconciled since the launch of enhanced reconciliation in July 2017.
PLEASE NOTE that the unreconciled list may prove to be long, but be aware that time spent now reconciling will eventually save time overall with your accounting.
- Your other option is to only reconcile invoices that are eligible for RL-24. To make it easier for you, our development team has put together a list with all the unreconciled items eligible for the RL-24. This list will be available into Step 2 of the RL-24 generation process found in the Finance tab> RL-24 Tax Credit sub-tab.
Why do we place so much importance on reconciliation?
Reconciliation is required to able to accurately generate and send your RL-24s. For example, if you have accounts with items that are partially reconciled only the reconciled amount will be eligible; however, the unreconciled invoices won’t be generated. That’s why we advise you to start doing your reconciliation now, before it’s too late. In addition, reconciliation by invoice item will allow you to start the year 2018 with your finances in order and thus facilitate these task during the tax period.
PLEASE NOTE: The reconciliation by invoice item also allows you to attach each of your payments to a ledger code. To learn more about the ledger codes, look at the article: The importance of Ledger Codes.
Next, we strongly advise you to prepare your clients RL-24s by advising them that it is important that their social insurance number (SIN) is in their account so that their RL-24 can be generated correctly. You can export the report “Missing SIN for all accounts” or the report “Missing SIN for recipients” under the Finance tab > Old reports.
If the SIN is not provided, due to the requirement of the Government of Quebec, the RL-24 will not be generated.
In addition, each of your customers eligible for these tax credits must provide their home address.
Be Ready and Confident for Tax Time
Start now and save yourself from headaches later by following our 3 simple tips:
- Take a look at the reconciliation of your accounts now.
- Make sure your clients have added their social insurance number (SIN).
- Verify your clients; home address.
Accomplishing these 3 tasks can go a long way to saving you time when generating your RL-24.
AND don’t forget, our support team is always available to answer your questions at email@example.com.