I switched over from MYOB to QBO almost a year ago and I am having trouble recording a BAS payment.
I have set up a weekly EFT transfer to my ATO income tax account so that when I lodge a BAS with the ATO they automatically draw money from that account for the payment.
I have set up an account in Owner's Equity called "Income Tax Payment", this is the account I record the EFT transfer to the ATO on a weekly basis.
My problem is that when it comes to recording a BAS payment in the QBO GST menu for a lodged BAS, under the "from account" dropdown window it will only give me an option to select a bank account and not the Owner's Equity account I have recorded the ATO EFT weekly payment.
Have I set this up wrong? Any help would be greatly appreciated :-)
When you record a BAS Payment, QBO only gives you the Asset and Credit card account options as this is where the money that will be paid to ATO will be taken out from. Generally, you cannot use an Income account for payments.
Hope this helps. Let us know if you have further questions.
Thank you so much for the quick reply Joey Ann, much appreciated.
So for my case where I am making weekly payments from my business cheque account into my ATO income tax account (Integrated Client Account). How should I record these transfers so it can balance when recording a BAS payment in QBO?
Any help is much appreciated :-)
You might consider using an account type cash and cash equivalents account instead of Owner's Equity. This will allow you to use this account when recording a BAS payment in the QBO GST menu.
If there are transactions that are already recorded in the Equity account, you transfer them manually to your new account. It’d be best as well to check your accountant about the right accounts that you can use in this process.
Stay in touch if you have other questions related to QuickBooks.