How do I allocate the receipt of the governments cash payment of $10,000

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  • Updated 2 months ago
I have received a one off cash boost from the Government and I was wanting to know the best way to receipt this into Reckon One accounts
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Geoff Bryant

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Posted 2 months ago

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Linda Benfield, Accredited Partner

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Hi Geoff, 

These instructions are only for if you have received the whole $10K in one lump sum to your bank account (and not just a credit to your BAS Account)

Create a new "Other Income" account called "Cash Booster Payment Received" with no GST code.

Ensure the Contact Australian Taxation Office is ticked to be both a customer and a Supplier

From the bank feed Allocate a receipt to the Australian Taxation Office and use account  "Cash Booster Payment Received" .

Kind regards
Linda
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Geoff Bryant

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Thanks Linda, I received just under the $10k in the bank as part of it was allocated to my BAS account as a credit for Employee Tax withheld.
Will that effect how it is allocated and also, is this classed as "taxable income" ? 
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Linda Benfield, Accredited Partner

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Linda Benfield, Accredited Partner

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This is how your original BAS journal should look.

Coming next is Cash Booster Journal
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Geoff Bryant

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I presume you mean an account in "chart of accounts" within the "Income" category? 
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Linda Benfield, Accredited Partner

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Yes, Chart of accounts But "Other Income" category

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Linda Benfield, Accredited Partner

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This is the Cash Booster Journal dated the day the money was transferred into your Bank Account from the ATO.
(Edited)
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Geoff Bryant

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I have created the new account, the money hasn't shown up on Bank Data as yet. I am totally confused with the journals. In my list of journals, the only journal type that appear are Pay run
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Linda Benfield, Accredited Partner

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Hi Geoff, 

OK. I understand now that you are not entering BAS journals each Quarter.

Does this make sense. Use the Receive Payment from the bank feed and your Accounant can sort the rest...

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Geoff Bryant

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Thank you very much for your help, accounting is not my forte, I am in the Garden Maintenance business. I will be looking for a tax accountant this year, hopefully one that is familiar with Reckon One. 
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Linda Benfield, Accredited Partner

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https://partnersearch.reckon.com/

You will find one here.

Happy to help you today.

Linda