cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

Recording Cash Flow Boost, relevant BAS prior to starting Quickbooks.

We have had a Cash Flow Boost arrive in our account today, being the difference between the $5000 and our BAS owing for the April - June 2020 Quarter. We commenced using Quickbooks this new financial year, so the relevant BAS was manually submitted to ATO online. How should I record this transaction to receive the refund in QB?

Solved
Best answer July 15, 2020

Best Answers
Content Creator

Recording Cash Flow Boost, relevant BAS prior to starting Quickbooks.

Hi GalaxyBuild,

 

If you have not recorded your BAS or the transactions that made up that BAS in QuickBooks, you may not need to follow all the steps in recording the Cash Boost involving recording the payment of the BAS and so on. Instead, you can create an income account for the Cash Boost received and record the refund here:

 

  1. Select Accounting and then Chart of Accounts from the left hand menu 
  2. Select New 
  3. Select the Account Type Other Income and the Detail Type of Other miscellaneous income
  4. Enter the Name as ATO Cash Boost Stimulus 
  5. Select Save and Close.
  6. Go to the Banking screen and click on the Cash Boost refund to expand it.
  7. In the Category drop-down, select the account you have just created, set the Tax code to Out of Scope and Save.

 

If the transactions for that BAS period have been entered into QuickBooks Online however, the way you record this may change. If they have, you can refer to this article on recording the BAS using a journal (see How to record a GST Payment when not using the Lodge BAS function in the GST Centre, and keep in mind that the 'BAS Liabilities' account is now named GST Liabilities and BAS Suspense is now named 'ATO Clearing'). 

 

This journal replaces the automatic journal that is usually created when marking the BAS as lodged in the GST centre. This records the BAS amount owed that can then be offset with a payment. If your BAS was paid for by the Cash Boost with the remainder as a refund (so technically you do not have money going out to the ATO),  you can then use the steps in the Cash Boost article linked above to create both a Cash Boost Clearing account (to record the payment of the BAS) and a Cash Boost Stimulus account (to record the actual Cash Boost). Then, you can record the payment of the BAS and the the receipt of the refund using journals. Journals can be tricky - if you are going to use this method, we would encourage you to first reach out to your accountant or bookkeeper to determine how exactly you should proceed. We are not accountants and are unable to provide advice specific to your books, however they will be able to assist in how exactly you should be recording this.   

 

-Kass

 

View solution in original post

1 Comment
Content Creator

Recording Cash Flow Boost, relevant BAS prior to starting Quickbooks.

Hi GalaxyBuild,

 

If you have not recorded your BAS or the transactions that made up that BAS in QuickBooks, you may not need to follow all the steps in recording the Cash Boost involving recording the payment of the BAS and so on. Instead, you can create an income account for the Cash Boost received and record the refund here:

 

  1. Select Accounting and then Chart of Accounts from the left hand menu 
  2. Select New 
  3. Select the Account Type Other Income and the Detail Type of Other miscellaneous income
  4. Enter the Name as ATO Cash Boost Stimulus 
  5. Select Save and Close.
  6. Go to the Banking screen and click on the Cash Boost refund to expand it.
  7. In the Category drop-down, select the account you have just created, set the Tax code to Out of Scope and Save.

 

If the transactions for that BAS period have been entered into QuickBooks Online however, the way you record this may change. If they have, you can refer to this article on recording the BAS using a journal (see How to record a GST Payment when not using the Lodge BAS function in the GST Centre, and keep in mind that the 'BAS Liabilities' account is now named GST Liabilities and BAS Suspense is now named 'ATO Clearing'). 

 

This journal replaces the automatic journal that is usually created when marking the BAS as lodged in the GST centre. This records the BAS amount owed that can then be offset with a payment. If your BAS was paid for by the Cash Boost with the remainder as a refund (so technically you do not have money going out to the ATO),  you can then use the steps in the Cash Boost article linked above to create both a Cash Boost Clearing account (to record the payment of the BAS) and a Cash Boost Stimulus account (to record the actual Cash Boost). Then, you can record the payment of the BAS and the the receipt of the refund using journals. Journals can be tricky - if you are going to use this method, we would encourage you to first reach out to your accountant or bookkeeper to determine how exactly you should proceed. We are not accountants and are unable to provide advice specific to your books, however they will be able to assist in how exactly you should be recording this.   

 

-Kass

 

View solution in original post