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Entering ATO Cash Flow Boost into MYOB

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Entering ATO Cash Flow Boost into MYOB

Hi, 

It looks like the ATO have started giving the cash flow boost (from BAS logdment)

Can someone please advise if I should create a new income GL code to record this. Or advise a journal for the best way to acknowledge the payment on in MYOB?

Thanks

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Re: Entering ATO Cash Flow Boost into MYOB

Hi @wadefab 

 

The Cash Boost is to be treated as Non-Assessable Special Income and there will not be any GST on it.  I will create a new Other Income account for this called Cash Boost Stimulus Non Assessable

 

I usually have a Credit Card type account set up called ATO Integrated Client Account and when I lodge a BAS, I create a Spend Money entry from this account that treats the GST Collected amount as a positive, the GST Paid as a negative and the PAYG withheld also as a positive.   Any other items like PAYG-I or Fuel Tax Credits are also treated accordingly and the total of the spend money entry should equal the amount payable for the BAS.

 

Then, when the payment is made to the ATO, I treat the payment as a transfer between accounts. 

 

When the credit is applied to the ICA account, I will treat that as a receive money in the ATO account and the credit will be posted to the new other income account.

 

If the subsidy is refunded, I will then treat the deposit to the bank account as a transfer from the ATO account.

 

I hope this helps you.

 

Regards,

 

AlanT

 

 

 

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Re: Entering ATO Cash Flow Boost into MYOB

Hi Allen

 

Thanks for your explanation. Am I correct in thinking that the CB from the ATO would be recorded as follows:

 

Dr Bank

Cr   Cash Boost Stimulus Non Assessable

(Recording ATO Cash Boost for Employers)

 

Your insight is much appreciated.

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Re: Entering ATO Cash Flow Boost into MYOB

Sorry Alan, I misspelt your name in my post!!

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Re: Entering ATO Cash Flow Boost into MYOB

Hi @Asish 

 

No problems.  That's the last thing I have to be concerned about at the moment.

 

Smiley LOL

 

Alan

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Re: Entering ATO Cash Flow Boost into MYOB

@wadefab @AlanT @Asish 

 

Alan is correct to create a Other Income Account called Cash Flow Boost with N-T code

 

I would create 3 cards eg ATO Cash Flow Boost #1 April 2020 etc.

 

If there are ATO Liabilities eg BAS Q3, the Cash Flow Boost will be adjusted.

 

I would use Receive Money to the Bank Account.

A Journal would then be required if there is a tax debt or BAS Q3 outstanding.

 

This week, I have struggling with Tax Accountants who do not use the Cloud.

Make sure, your Tax Accountant uses the Cloud so they can check the transactions.

 

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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Re: Entering ATO Cash Flow Boost into MYOB

Thanks Duncan

 

Your post is very helpful

 

 

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Re: Entering ATO Cash Flow Boost into MYOB

I have the following figures which do not let me enter a negative amount in "spend money"

 

Payg $2110

Cash boost $10,000

balance on lodgement as credit $7890 ( no money entered my bank account, it is just a credit with the ATO)

 

Obviously I need to enter the $2110 Payg into Myob somehow ??

 

Thank you

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Re: Entering ATO Cash Flow Boost into MYOB

Hi @7350392650 

 

Have you seen my answer to your question here:  https://community.myob.com/t5/COVID-Australia/ATO-credit/td-p/655697

 

Regards,

 

AlanT

 

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Re: Entering ATO Cash Flow Boost into MYOB

Yes, I have, but it doesnt seem to work for my situation. Maybe I am missing something, but you can't end up with a negative amount in "spend money"

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