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Cash Reserve Bank Account for GST and PAYGW

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Gras
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Gras
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Cash Reserve Bank Account for GST and PAYGW

I am helping out a family member who runs a small business.  It is a Pty Ltd company, sole Director.   I have taken over "keeping his books", with very little experience!  The business has a cash reserve bank account attached to the main Westpac Business account and I have commenced periodically transferring funds from this business account (around 30% of sales) into the cash reserve account to use to pay BAS committments.  I cant pay out of this account so have to transfer funds back into the main business account to pay the BAS (both GST and PAYGW).  How do I account for these tranasction in MYOB?

I have really appreciated the helpful suggestions and advice i receive from this community. Thank you.

Cheers, Gras

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Ultimate Partner GDay53
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GDay53
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Re: Cash Reserve Bank Account for GST and PAYGW

@Gras

 

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

 

Have sent you a private message.

 

If my response to your query and has helped, please mark my post as a solution to help others in the future.
Graeme Day
Registered BAS Agent #24745540
First Class Accounts Clayfield
Mobile: 0402 841 627
gday@firstclassaccounts.com
MYOB Certified Consultant
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Valued Cover User AndrewStephen
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AndrewStephen
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Re: Cash Reserve Bank Account for GST and PAYGW

Hi @Gras

 

Setup the two Bank Accounts in my case they are 

 

1-1000 - NAB Cabling Group BCA

1-1005 - NAB Cabling Group BCM

 

I keep minimal funds in the BCA (Everyday account) and on a regular basis do a transfer across the the BCM account.   In MYOB I record it as a transfer (Accounts -> Transfer Money)

11Capture.PNG

And do the same in reverse when transfering back to the main acocunt.

I have setup two recurring transactions to make it easier for me.

Hope this helps.

Regards

Andrew

 

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Ultimate Partner DuncanS
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DuncanS
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Re: Cash Reserve Bank Account for GST and PAYGW

@Gras @AndrewStephen @GDay53

 

Gras,

 

GST is paid Quarterly.

Some Business Owners pay PAYG - W monthly.

Monthly PAYG - W is required once PAYG - W for the year is more than $25,000.

Entities may have PAYG - I obligations.

 

The ATO suggests that Business Owners have a Yearly Calendar with their BAS/IAS obligations.

I was developing one yesterday with a client.

 

One should start with the BAS/IAS lodgements over the past year then examine current trading/staffing levels to determine likely amounts for future BAS/IAS.

 

You mention that you estimate 30% of Sales in ATO obligations.

 

Some clients pay a regular amount eg weekly directly to the ATO ICA.

 

Hope this helps.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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