Cash flow boost refund

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  • Updated 2 months ago
In reckon accounts desktop.
The ATO have applied the cash boost against my GST and PAYG so nothing to pay and getting a refund as well. How do I show my Gst has been paid in the balance sheet acct ?by journal to clear bank and show remaining cr in PAYG acct ?
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Posted 3 months ago

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Gillian Reeve

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I am not expert but you need to ensure that the liability accounts are cleared correctly so that you can reconcile the balance sheet to reports, I am suggesting that the Cash Flow Boost be coded to an Other Income Account called Cash Flow Boost. Gillian

Hi Leshelle

How do you process your BAS now, write a cheque when the payment is made or enter a bill and pay the bill off.
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Paul Murphy

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If any Help I did the following

I created an invoice to the ATO for item CFB with the account used  “Other Income” and No GST

I then Received the total CFB to another Bank account not our normal trading account

I then ran the payment for PAYG as normal with GST entries but made the cheque payable from the other Bank Account

I then transferred the balance from Other Bank account to the NAB account on the system.

 Profit and loss reflects the boost as income but is easily separated for tax records.

Hope this is of help it fixed my issue

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I would use a slightly different method to Paul as I don't like the idea of creating an invoice for something that is not actually a sale.  My approach has been:
  1. when credit hits the integrated client account, process a journal Dr (Other Current Asset) Covid-19 Boosting Cash Flow, Cr Other Income Covid-19 Cash Flow Boost
  2. if the amount has been used to offset an Activity Statement
    - pay the liability as normal but instead of applying to the bank account, apply it to a suspense or holding account
    - by journal Dr suspense and Cr (Other Current Asset) Covid-19 Boosting Cash Flow
  3. any amount that is actually received into the company's bank account, process a deposit and allocate to (Other Current Asset) Covid-19 Boosting Cash Flow.
Most businesses will need to do step 1 multiple occasions as there could numerous deposits in the integrated client account.
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Linda Benfield, Accredited Partner

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Hi All, 

This was my process

Ensure you have created a Bill for your March BAS prior to these steps to accurately clear liability Accounts.

1.            Set up an "Other income account" called "Cash Booster Funds Received"

2.            Create a Bill Credit to Australian taxation Office for amount credited to ATO-ICA Say $10,000

3.            If this Cr was Less than the BAS total then just go to suppliers  > pay bills tick the Bill and apply the credit.



4.            If this Cr was more than the BAS Enter a new bill to Australian taxation Office For the amount being refunded to your bank account.


5.            The account to use in this Bill is your Bank account. (this will appear as a deposit on your Bank rec)


6.            Go to Suppliers > Pay Bills tick  first ATO Bill and apply the Credit


7.     Tick 2nd ATO Bill and apply the rest of the Credit



Happy Bookkeeping

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Hi Bruce and Janelle
In the end I decided to pay both my Liabilities as per normal , using the Pay Liabilities window, out of the bank account, even though I didn't actually "pay " them. I then received thru "make deposit" the full cash boost amount via regular bank account into new cash boost income account. The net effect of these three entries in the bank , all dated same day, is equal to the actual refund that hit the bank that day.
Liabilities cleared
Bank account correct
Cash boost funds sitting in special income account.
I'm pretty happy with that.
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Janelle Robertson

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Thank you Leshelle and Bruce, I will have another look and work out the best way.
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Larshar College

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I have one question, I have started a bank account called Covid and the CFB as an other income, paid the both my bills from the covid account to bring the balance back to nill. Now when I do a profit and loss it now is telling me I have made the $10 000. How do I get rid of that. 
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Paul Murphy

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The CFB is reflected as profit, it just needs to be clearly separated as other income which you have done already
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I did exactly the same. One deposit in and one liability cheque out... on same date. 
Hi All, I'm fairly new to this whole accounting/Reckon experience and I need simple explanations as it all sounds way too complicated!  I understand Leshelles explanation of just making a deposit into a new Account.  Is this the same way as we will enter the $1,500 Jobkeeper payment for our employees?
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- you will make the deposit into your bank account as this is where it is received
- the other side of the transaction should be a new "other income" type named JobKeeper income (or similar).  This needs to be a new account because it is a) separate from your regular income and b) taxable in the hands of the employer (as distinct from the Cash Flow Boost which is non-taxable).
Thank you so much Bruce, think I can manage that.  So when I set up a new JobKeeeper account how do I assign the tax component to it?  Sorry, I'm asking basic questions!
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leave everything blank - JobKeeper does not attract GST (and your accountant can manage the income tax side of things).
All cash flow boost payments are non-assessable non-exempt income, which means they are not taxable to the entity- NANE . Your Tax Accountant  will treat this as NANE income in his Tax software as it has no effect in Income tax , even though you Accounting profit will look inflated and Tax profit will be reduced by this amount. There are other implications if this money is distributed to a trust beneficiary or to Company shareholders.
Thankyou to all above - I have created a new Account.  Really appreciate everyone's help :)