Tax Liability Report - Drill down

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  • Updated 11 months ago
  • (Edited)
We are using Reckon Accounts Enterprise 2017 operating on a Cash Basis.  When running the Tax Liability Report we are unable to drill down into the transaction level details to check what data is generating the sums.  We have tried running a transaction detail report on based on the Tax Payable account but cannot get them to match up.  Because we are importing some transactions from other systems, this inability to verify the tax liability has been raised as an issue by our auditors.

According to our accountant operating on an Accrual basis allows drill down on the Tax Liability Report but not on a Cash Basis
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Matt.CAVAL

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Posted 11 months ago

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Your accountant is correct you cannot drill down on Tax reports when reporting on a cash basis, you can however run a tax detail report, you should also run the tax code exception report.
Can I suggest you pull up one of the imported transactions and then click ctrl+y this shows the detail journal of the transaction, you may see an error here.
I have setup a BAS Audit routine for all my clients cash or accrual cross referencing several reports,  reconciled to the various tax control accounts.  C You can call me on 0412 485 495 if you wish.
(Edited)
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Soph

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Hi Matt - I also use Cash Basis GST report and due to the shortcomings of Reckon when you do a general journal with a line to the GST Payable account the Cash Basis Detail and Summary report do not show this.  I do a Cash Basis report for the GST Payable account for the quarter which will show the transactions.  I also do the Cash Basis report for the Summary Tax and you will pick up the difference in these 2 reports for the GST if you have done a general journal to the GST Payable account.

Soph
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John G, Information Support Analyst

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Hello Matt and Soph,

There is a structural limitation in Reckon Accounts (and the old QuickBooks) that does not allow you to drill down from a Summary Report (like the Tax Liability Report) to a Detail Report when the company file is set for Cash Basis.  Reports > Tax does provide a Tax Detail Report that will generate a Cash Tax and Cash Net reports.  They should correspond to your Tax Liability Report.  You can drill down from these reports to your transactions.  

I hope this helps.

regards,
John
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Soph

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So if I understand correctly John if my Reckon Accts are set to Accrual and I wish to see my gst report on a cash basis I would got to Tax Detail Report and be able to set this report to cash.  I have tried this and no cash basis.  So this means I would have to set my company file to Cash basis.  The only way I have found to get any Cash reports when your company file is set to Accrual is to first put your company file on a Cash Basis and save and memorise Cash GST reports and other reports that you want on a Cash Basis.  Then put the company file back to accrual and use those Cash Reports you memorised or saved.  Otherwise you would be flip flopping back and forth if you do your accounts on an Accrual basis for your accountants but do gst on a Cash Basis as I am sure a lot of small businesses do.

Soph
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John G, Information Support Analyst

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Thanks Soph,

Cash reports are generally used for Tax reporting (where allowed) and for micro businesses.  Standard Accounting practice is to present reports on an Accrual Basis.  Reckon Accounts (and the old QuickBooks) store transactions on an Accrual basis, and in preferences Accrual will be the default setting.

Preferences give you the ability to change your view between Accrual/Cash and Net/Gross in Tax and Reports settings.  You can set your General Reports to show Accrual and Tax Reports to show Cash, so only the Reports under Tax will display on a Cash basis while all other reports will display on an Accrual basis.

Only the Company & Financial Reports allow you to switch between a Cash and Accrual basis within the report; all other reports can only switch between Cash and Accrual in the Tax and Reports Preferences.   

If you want to independently verify the amounts on a cash-based Tax Report, you may need to change the Reports Preference to Cash as well. 

Reckon Accounts is geared to working on an Accrual/Net basis and only need to switch to Cash basis for Tax reporting (where allowed).  

Hope this adds a little more clarity to the Reports.  


regards,
John