can i claim unpaid expenses this financial year

Hi everyone, just wanted to get some clarification.

Say for example i purchase a heap of stock for my business before the end of the financial year on my 30 day account, can I claim the expense this financial year even though payment on the account won't be made until the end of next month ? Or do I need to pay the account in full by the 30th in order to claim the expenses this financial year?

Thanks

 

Also forgot to add I'm trading as a sole trader if that makes any difference .

 

If the stock is to be onsold its its inventory. If its asset then it needs to be paid by June 30th.

 

I believe this may be called an "accrual". (Do a Google for your situation i have nfi)

 

I am not an accountant but, if you have an invoice, you can enter it into your accounting system and claim it as an expense.

Otherwise, business would have to made expense adjustments for every dollar in their Accounts Payables. I have never heard of a business doing this.

 

Are you accounting on a cash or an accrual basis?
I am also not an accountant but my understanding from running businesses.

Cash basis means you only an incur an expense when paid and only receive income when receipted, accrual the expense is incurred when you receive the supplier invoice and the income is entered when you issue the invoice.