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

PAYG Instalment Liabilities

Hi, I'm using Quickbooks Online as a sole trader with no employees and it's working well for me so far thanks. This is however my 1st year-end with Quickbooks and need help with clearing the PAYG Instalment Liability amount on my balance sheet! I have my Quickbooks settings such that PAYG instalments are automatically included (by instalment rate) when I do my quarterly BAS. When making my BAS payment on the due date I pay the total amount (GST + PAYG Instalment) out of my business bank account. There is thus now a negative PAYG Instalment Liability balance on my year-end balance sheet.

How do I clear this?

I do not do a tax return for my business. I only do a personal one on which I include the income from my business. So any income tax payable is actually personal tax and not business. So the quarterly PAYG instalments that have been made are actually payments for me personally taken out of my business bank account so in effect drawings. I've however tried to journal the PAYG Instalment Liability out over to Owners Drawings without success. Also could not do a transfer.  

Can you advise please.

Louis

1 Comment 1
Kass_B - Product Champion
Content Creator

PAYG Instalment Liabilities

Hi LouisVG,

 

If you are wanting to clear a balance of an account, a journal would certainly be the way to do so. You can create the journal by:

 

  1. Select + New.
  2. Select Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Select Save and new or Save and close.

 

While we can guide you on where to go to create the journal, we are unable to advise where specifically you should journal this balance to as we are not accountants and cannot provide information specific to your books. We would suggest reaching out to your accountant, bookkeeper or a QuickBooks Certified ProAdvisor for advice on how best to record this transaction.

 

-Kass