tax code for recording personal drawings

Jay Garland
Jay Garland Member Posts: 111 Novice Member Novice Member
edited October 2024 in Accounts Hosted
When I record personal drawings (drawings is an equity account) I have been leaving the tax field blank (as it doesn't form part of my Australian BAS submission). That being said, I've heard of some people creating NA tax codes and using that instead. What's the neatest method for choosing a tax code when recording drawings? Should I leave it blank? Use NA? Do something else? I'm really wanting to understand this and as I'm just starting out with RECKON HOSTED, I want to get it right from the start.

Comments

  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited August 2019
    Leave it blank or it will show on tax reports.
  • Sue Jones
    Sue Jones Member Posts: 63 Reckoner Reckoner
    edited June 2017
    Hi I have always put my Private Drawings under NCI Tax Code (NON-CAP ACQ. FOR MAKING INPUT ) Just don't include it under G11 on your BAS STATEMENTS
  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited August 2019
    Sue thats not correct by the way. The "i" refers to input taxed as in expenses for private rental accomodation. Thank you.
  • Sue Jones
    Sue Jones Member Posts: 63 Reckoner Reckoner
    edited September 2016
    Well better tell my Accountant cause Thts how he set it up 15+ year's ago n use it all the time
  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited September 2016
    Hey ive only been using Reckon for 18 years. Oh well
  • Kim Chapman - COS Business Solutions
    Kim Chapman - COS Business Solutions Accredited Partner Posts: 134 Accredited Partner Accredited Partner
    edited October 2017

    Hi Sue

    Kevin is correct, NCI is for Bank Fees, Interest etc.

    Kind Regards

    Kim Chapman

  • Sue Jones
    Sue Jones Member Posts: 63 Reckoner Reckoner
    edited August 2019
    So I have had 3 different Accountants over 15 years n they all have done nothing
  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited September 2016
    Kevin is correct Sue. Go to the ATO website and search for "input taxed". Thanks for your attention.
  • Shirley Ingle
    Shirley Ingle Accredited Partner Posts: 97 Accredited Partner Accredited Partner
    edited July 2017

    Hi Sue  Don't be upset that your accountants have given you wrong information or no input. When GST was first introduced I used NCI for Bank Fees, Interest paid but now days I use NCF for Bank Fees as NCI and NCF both sit at G11 on the BAS form. I use NCI for Rental Property Expenses, domestic situation and INP for the Rent Received from those Rental Properties. Most definitely don't put NCI on Private Drawings, I always leave this coding blank as it has nothing to do with BAS. I think the purple software tax code everything.  As a guide, 'N' codes are for expenses that appear in the Profit and Loss e.g. NCF, NCG and NCI. Private Drawings are in the Balance Sheet area. GST is still an interesting topic even 16 years down the track.

    Happy coding  Shirley

  • Jay Garland
    Jay Garland Member Posts: 111 Novice Member Novice Member
    edited November 2017
    That was my instinct - to leave it blank. Glad that my approach has been confirmed. The only problem is that when you run the AUDIT at the end of each month it flags all the entries with no tax codes as a problem. *sigh
  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited August 2019
    Jay that is EXACTLY what you want to do. You need to confirm they are all personal. Thank you
  • Zappy
    Zappy Accredited Partner Posts: 5,258 Accredited Partner Accredited Partner
    edited July 2017
    Correct Shirley as I pointed out in my first response. Accountants dont know bookkeping software.
  • Shirley Ingle
    Shirley Ingle Accredited Partner Posts: 97 Accredited Partner Accredited Partner
    edited December 2016

    Hi Jay  Why not set up this report. Go to Reports, Accountant, General Ledger, in Display tick Tax Code. Then in Header Footer under the report title call the report General Ledger with Tax Code and then memorise this report. In this report you can scroll from Bank to the very last coding in the Chart of Accounts. As you are moving through this report you often pick up mistakes clients have made in either coding or using the wrong tax code. I find by the time I have gone through this report, if you don't report inventory, your P&L and Tax Summary will usually balance to the cent. Wages and Super amounts are deducted from the expenses in the P&L as they don't have tax codes. This will eliminate *sigh  Shirley

  • Shirley Ingle
    Shirley Ingle Accredited Partner Posts: 97 Accredited Partner Accredited Partner
    edited December 2016

    Hi Jay  Why not set up this report. Go to Reports, Accountant, General Ledger, in Display tick Tax Code. Then in Header Footer under the report title call the report General Ledger with Tax Code and then memorise this report. In this report you can scroll from Bank to the very last coding in the Chart of Accounts. As you are moving through this report you often pick up mistakes clients have made in either coding or using the wrong tax code. I find by the time I have gone through this report, if you don't report inventory, your P&L and Tax Summary will usually balance to the cent. Wages and Super amounts are deducted from the expenses in the P&L as they don't have tax codes. This will eliminate *sigh  Shirley

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