Reckon One - recording reserves for tax, leave and super

Fiona Hobbs

I am a sole trader and am on the PAYG system for income tax. I am not registered for GST. I want to keep reserves aside for tax, leave and super so Reckon keeps a record of how much of the cash in my bank account is already spoken for. Two questions: 1. how do I record the reserve in the first place; 2. how do I record the expense when I spend from the reserve? Thanks in advance.

Eric Tong

Reckon One or any accounting software has a Chart of Accounts for your assets, liabilities, equities, income and expenses.  Money In (income) and Money Out (expenses) transactions record the movement of fund between these accounts.  You need an asset account for your bank account, a liability account for each of the tax and super accounts. 

For bank account, you need to record the opening balance as according to your bank statement, then record all transactions in Reckon One such that the account can be reconciled with the actual bank transactions.  Bank transactions can be automatically fed into Reckon One or download from the bank and upload to Reckon One manually.

If you use the Payroll module, you can specify the liabilities accounts for tax and super in the Payroll settings.  You can also setup the leave balances and entitlement in the Payroll module.  Then the tax and super liabilities as well as leave will be recorded accordingly when you perform a Pay run.