How to enter a Company Income Tax Payment
Grant_7029312
Member Posts: 4 ✭
We received a Company Income Tax Bill, how do I enter it correctly and enter payments.
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Comments
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This should be definitely guided by your tax agent, no doubt , some one will attempt to answer this for you in this forum There is a prior income tax expense provision is created by your tax agent, which he should have given to you after he finalised your company tax return.
Cosmic Accounting Group
Registered Tax Agent #22397009.
Cosmic Accounting Group
Accountants and Tax Agents 22397009
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Unfortunately my experience is that accountants in my area seem to have limited knowledge with reckon accounts regarding entering transactions such as this.
There should be a standard procedure to enter a company Tax Debt and their payments in to Reckon Accounts. However research on this topic also appears to be limited.
I was hoping someone could explain how they apply these entries.0 -
Hi, if you have difficulties with your engaged Tax Agent, please give us a call
on0295411338, or mobile :0407068942.
Cosmic Accounting Group
Accountants and Tax Agents 22397009
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I have it as a transfer from
Tax Office Liability:Provision for Income Tax
to
Income Tax Expense
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Thanks for your input AF, not sure exactly what account type your "Income Tax Expense" is. I assume it is not actually an expense account as a tax payment is not a claimable expense, and the entries should not effect the P&F. I will post what I done and I think this has the desired effect.0
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Here is the solution I currently have in place,
- I created a new "Other Current Liability" account called "Income Tax"
- I created a "General Journal Entry" to Credit the "Income Tax" account and Debit "Capital Profits Reserve" Equity Account. The amount was for the Tax Payable amount.
- I create an entry in the "Write Cheques" for the amount of the payment's to the "Income Tax" account. This will apply the payment to the debt.
Entries can also be applied to this account for any fees or interest which are a claimable expense.
No doubt there are many ways to do this and I would like to continue see how others accomplish this, and or their feedback.0
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