Forum Discussion

georgieh's avatar
georgieh
Experienced Cover User
4 months ago

Company tax entry

I just paid company tax for 2024, but it is set up in my file as an "Other Expense", with then obviously reduces my net profit for 2025.

 

What sort of account should company tax be so that it reflects NPAT for last year, and doesn't effect this year?

4 Replies

  • Another account to use is a liability named 'company tax liability or tax liability' 
    This is used by the accountant to enter the tax of 2024 for you to pay off the liability.

  • georgieh's avatar
    georgieh
    Experienced Cover User
    4 months ago

    Thanks Chris. My accountant doesn't tend to do much within MYOB - just uses it to complete the formal financials and tax returns. 

    So if I were to do this myself, what would the entries be (and what about the dates, when the transactions occurs in the next financial year)?

  • DuncanS's avatar
    DuncanS
    Ultimate Partner
    2 months ago

    georgieh​ ChrisMc​ 

     

    The Journal for Income Tax Payable is

     

      Dr Income Tax Expense FY24   Other Expense

        Cr  Income Tax Payable FY24   Current Liability     Dated 30 June 2024

     

    Payment is posted to Income Tax Payable

     

    I do wish Accountants would use the Cloud and record their workings within the MYOB file.

     

    Duncan