Tax and BAS Agents have access to the ATO Integrated Client Accounts for their clients and the following is a procedure that allows Tax and BAS Agent to reconcile this account.
This process involves creating two accounts, completing your BAS, then recording a journal entry for the ATO payment or refund.
Create two accounts
Create a new credit card account in the GST Liabilities section and call it ATO Integrated Client Account.
Tax Code N-T (not reportable).
Then create a new Expense Account called GST Rounding Account. Tax Code N-T (not reportable).
Complete your BAS
When it is time to do your BAS /IAS, run your GST Summary Report, Payroll Activity Summary Report and P&L and check the Company data auditor as you would normally do. Then complete the BAS/IAS and print out a copy of the transaction from BASlink.
So up to now you have completed the BAS as you would normally have done.
Record a journal entry for the ATO transaction
Now instead of doing a Spend Money transaction, enter the BAS/IAS “Reported amounts” shown on the transaction you printed via a General Journal. This Journal should be entered on the date that the BAS/IAS is completed and reported. This journal entry will transfer the amounts for the GST and PAYG into the ATO Integrated Client Acct.
When you enter the amounts into this Journal you should always enter;
GST Collected as a Debit,
GST Paid as a Credit,
PAYG withholdings payable as a Debit,
PAYG Instalments if any as a Debit.
the rounding amount as Debit or Credit (as needed)
the amount into the ATO Integrated Client Account as a Credit or Debit:
If the BAS/IAS amount is payable to the ATO, enter this amount as a Credit
If receiving a refund from the ATO enter this amount as a Debit.
When the BAS/IAS amount is paid you would then do a Spend Money from the bank account to the ATO Integrated Client Account recoded on the actual date of the payment.
Or if a refund on the date received enter a Receive money from the ATO Integrated Client Account to the Bank acct.
This will mean that the ATO Integrated Client Account can then be reconciled the same as any other bank or credit card account, through Reconcile Accounts.
And you should always know exactly how much you owe the ATO.
Graeme Day Registered BAS Agent #24745540 First Class Accounts Clayfield Mobile: 0402 841 627 firstname.lastname@example.org MYOB Certified Consultant MYOB Diamond Partner