How do I record my PAYGI in Reckon Accounts Hosted
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KellyH
Member Posts: 35 ✭
My accountant has told me to put my PAYGI under account Taxation/Tax Payable but this doesn't make much sense to me. I had my GST on Purchases as $1923.00 and my PAYGI as $2723.00. So Ive drawn a cheque to the ATO for $800 and if the PAYGI was GST on Sales I can completely understand as I would put the GST on Sales in as a positive and the GST on Purchases as a negative, giving me the $800 payment when I do the transaction in Pay Tax. I get the same result when I put the PAYGI as a positive but I dont think I should report it to the same account. Should I be setting up a separate account for the PAYGI so that is doesn't effect the Tax Payable balance? Can anyone help?
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Comments
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Hi Kelly,
You right, that feels a bit clunky.
So draw your Cheque for $800
Choose Tax Payable and enter -$1923
go to next Line
Type in Company PAYG Instalment (set up as other current Asset)
and enter $2723 to that account.
Should all balance nicely
Linda1 -
Thanks Linda. I knew it didn't make sense. The accountant told me to use the Taxation account or set up a new Liability Account and use that. I just didn't think it should go into the same account as Tax Payable even though it is tax payable its doesn't form part of the GST so wanted to keep it separate. If your saying to set it up as an asset, do I need to clear that out or no. Still a bit confused.
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Hi Kelly,
It will be cleared by your accountant when they finalise your tax return. You just need to park the funds in the Balance Sheet so it is easy for the Accountant to see it.
Linda1 -
Kelly
I use a similar approach to Linda which I call "Provision for Income Tax". I typically set it up as a liability account because the normal expectation is that I will have to pay tax - therefore a liability.
I also record any obligations to pay tax in the future in this account - typically caused by recognition of tax as determined as part of the end of year work by the Accountant.
1 -
Ok thankyou everyone that is definitely much clearer than my accountant. I have another company set up in Reckon Hosted and I use GST on Sales and GST on Purchases (liability accounts) rather than tax payable. I think I may even go in and change this so that it doesn't cause confusion. Not sure that I set up this new company correctly. Luckily only started reporting since January so hopefully wont be too much of a hassle to change over.0
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