Home – New Forums Money matters Old Thread – Unanswered Question Please help – How do I reconcile BAS payments made ?

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  • #989146
    AnthonyG
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    Hi, new user here.
    Short Version of question:
    How should I record BAS payments made to the ATO so my account reconciles and profit & loss and balance sheet are correct?

    Long version of question:
    I use MYOB. I enter all my sales, expenses and wages data and it calculates gst paid, gst collected and payg withholding payable for me. I then enter that into the business portal and pay via bpay.
    That total amount then comes out of my cheque account.

    But I don’t know how to reconcile that BAS payment in myob.

    I have been recording bas payments into an “Other Expenses” account called BAS Payments. I think this is wrong because it then appears on my profit and loss as an expense and makes the business look like its running at a loss. Pretty sure we are not running at a loss because we pay us a wage and have some left over.

    So, how should I be entering the BAS payments and how do I fix the last 2 years worth of mistakes.
    Thanks in advance.
    Anthony

    #1170653
    Past-Member
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    I used to use MYOB but not for a while. From memory, you go into the BAS Summary and then there is an Export transaction button somewhere. That will give you the details for the transactions in MYOB.

    Hopefully an MYOB expert will answer further.

    #1170654
    AnthonyG
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    Thanks Karen.
    I am not sure where “the BAS Summary” is.
    I have a report called GST Summary, but I don’t think that’s what you mean.

    I thought I would have to create some accounts to balance the BAS payments.

    Maybe you are referring to BASlink……which I don’t use or understand. Maybe if I use BASlink it will create the appropriate accounts and then reconcile my BAS payments appropriately when I import my banklink/bankfeed file.

    Anthony

    #1170655
    Lucinda Lions
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    Hi AnthonyG

    First of all, welcome to the Flying Solo forums!

    Karen has given you some great initial information and hopefully an MYOB expert can give you some further guidance.

    It’s beneficial to let people know a bit about yourself and your business. Can you please take a moment to introduce yourself in this section: http://www.flyingsolo.com.au/forums/new-member-introduce-yourself/

    Bye for now,
    Lucinda :)

    #1170656
    AnthonyG
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    Done lucinda. Not sure if this is myob or just basic accounting stuff.

    #1170657
    AnthonyG
    Member
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    Solved. I just had to apply each component of the bas payment to the relevant account via spend money.

    #1170658
    FalzonFinancial
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    Hi Anthony

    The account you have created “Other Expenses” account called BAS Payments, should not be an expense. It should be a liability or clearing account. When GST is payable it will increase this account, when the GST is paid it will inversely decrease this account.

    Feel free to contact me if you require further assistance.

    Matthew

    #1170659
    EmbalmSkincare
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    Hi all,

    I have a similar problem. I have received a GST refund from the ATO and my reconciliation in SAASU is out of whack.
    I know that I need to match the refund somehow but all I can enter is either a purchase or a sale but it is neither.
    Could someone please tell me how to enter it?

    Also, there may be another amount to be matched. Is there a simple way to find which one it is?

    Thank you in advance.

    Warmest regards,
    Mel

    #1170660
    ShellysBookkeeping
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    Hi mel,
    If you enter the BAS as a purchase transaction, entering each line item. If the total is a refund, then your total should be a negative number. After saving you should be able to reconcile.

    Let me know if you need anymore help
    Shelly

    http://Www.ShellysBookkeeping.com.au
    Shelly@shellysbookkeeping

    #1170661
    EmbalmSkincare
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    Hi Shelly,

    Thanks for that but I still don’t understand :-) It’s not the entire BAS. It is only the GST refund I received from the ATO in 2012/2013. As it shows in my bank transactions, I don’t know how to match it off.

    Any further help on this would be much appreciated.

    Warmest regards,
    Mel

    ShellysBookkeeping, post: 198969 wrote:
    Hi mel,
    If you enter the BAS as a purchase transaction, entering each line item. If the total is a refund, then your total should be a negative number. After saving you should be able to reconcile.

    Let me know if you need anymore help
    Shelly

    http://Www.ShellysBookkeeping.com.au
    Shelly@shellysbookkeeping

    #1170662
    ShellysBookkeeping
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    Hi Mel,

    If you look at your BAS summary, you will see that there are several line items, print this out so you can see it.

    This is an example of the information you need

    1A. GST collected $500
    1B GST paid $1000
    4. PAYG witholding $200
    5A PAYG instalments $0
    there may be other items depending on your particular records

    Add a new purchase and set the contact as ATO

    You should have the following accounts already set up in your file- use these for your BAS
    Liability: Tax collected from sales -enter GST collected eg $500
    Asset: Tax paid on purchases – enter GST paid eg -$1000
    Liability: Employee PAYG payable – PAYG witholding $200
    Liability: PAYG instalments $0
    Total -$300 (refund of $300)

    Enter the amounts as per your BAS
    If the amount is in brackets eg ($5.00) then enter that amount as a negative.
    The total for the purchase if it is a refund will be a negative amount.
    Once you have saved this, your should be able to reconcile to your bank account

    This is a link to the Saasu help on BAS
    http://help.saasu.com/tax/australia/entering-bas-payments/

    Hope this helps, if you are still having trouble, email me offline
    [email protected]

    Shelly

    #1170663
    EmbalmSkincare
    Participant
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    Hi Shelly,

    Thanks so much.

    The one thing I don’t understand about this is why do I need to enter all the other amounts if I only want to enter the GST refund amount.

    Warmest regards,
    Mel

    #1170664
    ShellysBookkeeping
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    • Total posts: 89
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    Hi Mel,

    You need to enter all the amounts so that your accounts will balance. If you only enter the refund amount, then all the other accounts that had a number will be out by that number. This will cause your accountant headaches and you a bigger bill whilst they correct it.

    This is standard for all BAS, and similar process in all software.

    Glad to be of help

    Shelly

    #1170665
    ADP
    Member
    • Total posts: 4
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    Hi Mel,

    By entering separate line items for GST Collected, GST Paid and PAYG Withholding Payable, these liability accounts will now be set back to zero for that period ensuring your balance sheet is accurate and showing that these liabilities have been met.

    Regards,
    Aaron
    DQ Bookkeeping Co
    http://www.dqbookco.com.au

    #1170666
    LizaB
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    Hello everyone, I am having the same issue with Saasu and I am not sure the solution fits my purpose. Basically I have started to use Saasu from this FY, I had a GST refund from ATO because my March 2018 BAS was revised. On my bank feeds I have this amount showing up and I don’t know how to categorize it. Saasu says I should enter it as a purchase. But under what account should it be categorized? Thank you for your help!

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