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How to set up and record Cash Boost stimulus payments

by Intuit• Updated 1 year ago

Need help recording your Cash Boost stimulus payments? The process has four steps:

Set up a clearing account to record the BAS payment
Set up an Other Income account to record to CashBoost payment you will receive
Enter a journal to ensure the transactions are recorded correctly
Matching the transaction when it comes through your bank feed.

For more information on the Cash Boost payments visit the ATO website.

How to set up a clearing account

Note: A clearing account can be used when money will be received but hasn’t yet been paid.

Go to Bookkeeping and select Chart of accounts (Take me there).
Select New.
Select the Account Type as Cash and cash equivalents and the Detail Type of Cash and cash equivalents.
Enter the Name as Cash Boost Clearing.
Select Save and Close.

How to set up an Income account for the CashBoost Stimulus

Note: we recommend you reach out to your accountant or bookkeeper to ensure this account is set up for your business correctly.

Go to Bookkeeping and select Chart of accounts (Take me there).
Select New.
Select the Account Type as Other Income and the Detail Type of Other miscellaneous income.
Enter the Name as ATO Cash Boost Stimulus.
Select Save and Close.

The next step differs depending on whether you receive a refund, are still required to make a payment or if the no money will be received or is owing.

I will be receiving a Cash Boost Stimulus

For this example, we’ll use the following scenario:

The GST Payable is $10,000 and the Cash Boost is $15,000 this means you will a refund of $5000 from the ATO

Go to GST.
Select Record Payment from the Actions column of the relevant Lodged BAS.
Select Cash Boost Clearing from the dropdown menu.
Enter $10,000 into the Payment amount field.
Select Save.
Select + New from the left hand menu and choose Journal entry.
In the first line, enter a Debit of $10,000 to the Cash Boost Clearing account.
In the second line, enter a Debit of $5,000 from your bank account you will be making the payment from.
In the third line, enter a Credit of $15,000 to the ATO Cash Boost Stimulus account.

I still owe GST after the Cash Boost stimulus

For this example, we’ll use the following scenario:

The GST Payable is $10,000 however the Cash Boost is $8,000 this means you are still required to pay $2000 to the ATO.

Go to GST.
Select Record Payment from the Actions column of the relevant Lodged BAS.
Select Cash Boost Clearing from the dropdown menu.
Enter $10,000 into the Payment amount field.
Select Save.
Select + New from the left hand menu and choose Journal entry.
In the first line, enter a Debit of $10,000 to the Cash Boost Clearing account.
In the second line, enter a Credit of $2,000 from your bank account you will be making the payment from.
In the third line, enter a Credit of $8,000 to the ATO Cash Boost Stimulus account.

Note: You’ll still need to make the adjusted payment to the ATO as normal

I won’t be receiving a refund or have to make a payment to the ATO

For this example, we’ll use the following scenario:

The GST Payable is $10,000 and the Cash Boost is $10,000 this means you won’t receive a refund or owe the ATO any money.

Go to GST.
Select Record Payment from the Actions column of the relevant Lodged BAS.
Select Cash Boost Clearing from the dropdown menu.
Enter $10,000 into the Payment amount field.
Select Save.
Select + New from the left hand menu and choose Journal entry.
In the first line, enter a Debit of $10,000 to the Cash Boost Clearing account.
In the third line, enter a Credit of $10,000 to the ATO Cash Boost Stimulus account.

Matching the transaction when it comes through your bank feed

The final step will be to match the journal entry. For information to this see Learn how to match bank transactions

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