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jarrodnewton-hot
Level 1

I just finished my first year as a sole trader, and I need to reconcile my ATO tax payment against the bank feed. Should I record an expense, or just a transfer?

Now that I've finished my first tax return, I've been automatically enrolled in PAYG instalments from now on, but I wasn't enrolled previously and Quickbooks hasn't been tracking any PAYG info (but I've now turned that setting on and will lodge quarterly).

But with the payment I've just made, I don't know whether I should try to record it as an actual tax expense in quickbooks, or if it's easier to just record it as 'Owner's Drawings' given it's just my personal tax debt as a sole trader anyway.
1 Comment 1
IntuitSheila
Level 8

I just finished my first year as a sole trader, and I need to reconcile my ATO tax payment against the bank feed. Should I record an expense, or just a transfer?

Thanks for posting in the Community, jarrodnewton-hot!

 

Did you lodge your BAS in the GST center of QuickBooks Online? If your BAS has been lodged in QuickBooks Online, you'll need to record the BAS payment first before you can match it to your bank feed.

 

Here's how:

 

  1. Go to GST, then navigate to the To Do tab.
  2. Select Record Payment on the activity statement you want to record a payment against.
  3. Enter the Amount paid.
  4. Select the Account the payment was withdrawn from and the Date of the payment.
  5. Enter a Memo for the transaction if required.
  6. Select Save

 

After recording the BAS payment, let's go the banking feeds and match the payments. If you did not use the GST center to lodged your BAS, you can record the taxes paid as an expense transactions. Or you can check this link to learn more about recording BAs payment;

 

 

Feel free to post again in the Community if you have further concerns. I am around to help you!