Should my quarterly cash tax summary gst amount balance to the gst cash balance sheet at the same period? If I date range the quarter on the balance sheet why would the two amounts differ? If an invoice is raised in that quarter but paid in the next quarter?
Yes it should go pretty close - but lots of reasons it could be out... such as 1. entering amounts to the Tax Payable account that are not actually for payment of GST - eg.. personal income tax payments and refunds... 2. making changes to prior periods that mean the amount of BAS paid/refunded is now incorrect. 3. Changes to prior years or changes by accountant for prior years that makes carry forward figure now incorrect
Thank you Linda, and it should be close to an accrual balance sheet once I add in gst for AR and less gst for AP? Correct? Neither of these BS reports (cash or accural) can I balance my tax summary to. Should I be out the same amount? Is the tax summary correct and I should change the balance sheet to match it?