GST - Liabilities

TRUDIE MICHELS

Hello! I do not collect GST as I am not big enough. When I pay a bill I put the whole amount in. I do not split it. My GST liability has been zero but ever since the new hosted version was installed I now have a liability of -$851. When i look at the GST account - the amount has accumulated since 2009. Does anybody have any insights? I am unsure on how to clear the GST account. Thanks in advance.

Acctd4

Sounds like you have Tax Tracking enabled in your Preferences.

Firstly, I would have a look at the transactions under the Tax Payable account in your Chart of Accounts. (You can modify the report to display only amounts over $ 0.01) Edit those transactions to post the full amounts to the applicable expense/COGS accounts)

Once this account is clear, you can disable it by going to the Edit dropdown menu (along top toolbar) > Preferences. Click on the Tax icon in the left hand side list, then under the Company tab, select No for tracking tax ☺️

Bruce

@Acctd4 Shaz

My approach would be different to that suggested by you.

Given that the amount in GST Tax Control has accumulated since 2009 I would do a bulk journal, effective today, to clear the GST liability (Dr Misc Exs Cr GST TaxControl). Rationale for this is that accounts/tax returns etc for the years since 2009 have been finalised. I don't see the benefit of backtracking umpteen transactions over 12-13 years and throwing the finalised documents out.

Once I've this I would then switch off Tracking Tax as suggested.

TRUDIE MICHELS

Thanks Shaz, I can see what you are trying to do and I had a go with the first 2 (of 500+). A pop up box came up saying "am I sure..." as it would affect the tax returns from previous years. I am trying to uncomplicate things.

Thanks Bruce - I think this may be a simpler option. And at least if there are any issues it can be found in the one transaction. I will give this ago and see what happens.

Much appreciate your help!@Acctd4

TRUDIE MICHELS

Hello Shaz and Bruce

I did a general journel entry as you suggested Bruce and then switched of Tax tracking.

Then i do a balance sheet and the GST is still there. What am I doing wrong?

Trudie

Acctd4

Ah ... because tax tracking wasn't intended (& the balance is also minimal), I had assumed there were minimal transactions in there !!! No, I agree with Bruce ... obviously it wouldn't make sense to trawl back through that many entries 😫

@TRUDIE MICHELS Date the GJ 01/07/21 (this current FY) & your current Bal Sheet should be correct (check the date range!)