preparing bas. my gst to pay on tax liability report and my tax payable on my balance sheet don't ma

KELLEE VIELLARIS
KELLEE VIELLARIS Member Posts: 2
edited August 2020 in Accounts Hosted
"figures not matching on reports

Comments

  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited July 2020
    This can be caused by many things - first question - is your BAS payable on cash?  if so, are you running the Balance Sheet on a Cash Basis also?  

    Second and subsequent questions - check the transactions in the tax payable account - have you inadvertently entered say personal income tax payments to the Tax Payable account in error?   are you payments for GST up to date?  have you ensured that any PAYG withholding payments have been correctly entered to the PAYG Withholding account and not the Tax Payable account?

    Find and correct any of these issues and then see how you go - wont ever balance to the cent but should be close provided this has been checked all the way through.  I have come across clients where there are many years of such errors and the opening balance is never going to be right for the current year until all the errors from previous years are either fixed or moved to another account somewhere.
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited February 2020
    To add to what Linda has already stated, if you run accrual accounting, the balances should generally only be out by a few cents.  If running cash accounting, it will likely never be close, particularly if you have issued invoices with GST included and these haven't been paid within the same GST period, or you use Accounts Payable and have unpaid bills at the end of the tax period.  The reason for this is due to the tax account recording these transactions at the entry date, whilst the tax report only includes transactions which have been fully completed within the tax period.
    A couple of other traps involve:
    1.  Changing a transaction from a prior period, after the BAS has been submitted
    2.  Deleting a transaction from a prior period after the BAS has been submitted
    3.  Adding a transaction into a prior period after the BAS has been submitted.
    John L G