Tax Reconciliation Report

[Leslie22]

The Tax Information Reconciliation report is showing a large out of balance amount. - e.g..

GST on Sales for December is $786.19

Actual Account Balance is 15,396.63

Out of Balance - (14,610.44)

I believe our tax codes have been set up correctly (we a non for profit business and majority of our transactions are GST related) and the 10% has been correctly applied..

We operate on a Cash Basis.

Should I be concerned that there is such a large differnece, and if so how do correct.

Thank you as always :-)

[Steven_M]

Hi @Leslie22

The Tax Information Reconciliation Report compares the balance of your GST account with that of your transactions. In an ideal world the two balances on that report (Expect Account Balance and Actual Account Balance) should be the same. However some situations could lead there to be a difference Help Article: Out of Balance in Tax/GST Information Reconciliation report would be able to assist with those possible differences.

In general there is no cause for alarm as its generally a timing difference between the tax is remitted and the new reporting period begins. However, in your case as you have an significant amount its worth going through those possible reasons to see if one or more of those has occurred. 

Do let us know how you get on and if you require further assistance.

[DuncanS · Accepted solution]

@Leslie22 @Steven_M

One of the steps that i use is comparing the GST Report (Cash or Non - Cash) to the GST Accounts on the Balance Sheet. If you use Non - Cash, the figures may well be the same.

As Stephen, mentions there could be timing issues, has your structure or reporting method changed?

I enclose my GST Checklist for your perusal.

Duncan

[Leslie22]

Thanks for all your help.

I will review once I get back into the swing of things (we reopen tomorrow). No doubt, I may have more queries.

Appreciate all your very helpful comments and BAS/GST Checklist