My understanding is that GST collected and paid sits on the balance sheet until it is paid at BAS time. Why is there a default account called BAS Expense and how is it used?
I’d like to share some views on this.
Once you have set up your GST in QuickBooks Online, new accounts will automatically be created in your Chart of Accounts:
The BAS Expense account is used to track the GST or other tax you have paid, but not claimable from ATO.
On the other side, the ATO Clearing/BAS Suspense account is like a clearing account; once you lodge your BAS in QuickBooks Online, the amount payable or refundable will be posted to this account.
Lastly, the BAS Liabilities account is where the GST Collected and GST Paid amounts are posted when the transaction includes GST.
Let me know if you need further clarification on this. I’ll do my best to help.
please confirm if my understanding is right about ATO Clearing account.
once a client finalize the quarterly BAS including GST , PAYG w/h and sometimes installment, a Journal entry will be automatically created by quickbooks to bring the balance of these above items into ATO Clearing account.
client will only need to pay this amount balance in ATO Clearing Account to clear off all bills. the payment once made will be allocated to ATO clearing account.
is that right ?? please advise. i am a new Quickbooks user so still learning