If your Fund is registered for GST, you will want to complete a BAS return at the end of each period.
Begin by verifying that all GST credits and debits have been entered correctly. You can do this by first clicking the EXPENSES tab to note all expenses incurred during the period:
Note which expenses relate to the relevant period.
If your fund is registered for BAS as a non-cash entity, you should also check, in the same way, for any LIABILITY entries in the relevant period that may include a GST component.
Clicking Accounting under the Settings menu will display the totals in GST Paid, GST received and GST Clearing accounts
Click on the underlined Account Number to view detail of the entries.
For guidance on entering the GST component of expense payments, please refer to Expenses: Accounting for GST.
For guidance on entering the GST component of unpaid creditor invoices, please refer to Liabilities:Accounting for GST.
If you have raised debtor invoices that include GST, please refer to Receivables: Accounting for GST for guidance on entering the GST component of debtor invoices, or Receivables Paid: Accounting for GST on Cash Basis if your Fund is registered for GST reporting on a cash basis.
If you have received cash income that includes GST (for example, rent paid by a tenant in a commercial building), please refer to Income: Accounting for GST Received for guidance on recording the GST component of income received.
When you are confident that all of the GST components of income and expense entries have been correctly recorded and are showing in the GST accounts, take careful note of the totals showing in 2-100 GST Paid and 2-1010 GST Received for the period. You will need these figures to complete the next step.
Click GENERAL JOURNALS (at the top of the Accounting page) or go to Journal Entries on the Settings Menu and click ADD NEW JOURNAL ENTRY .
Mclowd™displays the Journal Entry screen.
You will want to first transfer GST Paid debits (the total in 2-1000) to credit the GST Clearing account and GST Received credits (the total in 2-1010) to debit the GST Clearing account.
This will reveal the total GST amount you owe, or the any GST credit the ATO owes your fund.
Check that the Out of balance figure at bottom left is 0.00 and click ADD JOURNAL ENTRY to save.
This will clear the balances of your GST Collected and GST Paid accounts as at the end of the period. (There may be residual balances showing in the accounts as at the current date if you have already made entries to account for GST paid or collected in the current period.)
Next, you will want to clear the GST Clearing balance, add any PAYG liability, and transfer the total amount due to the ATO (or refundable from the ATO) to your Tax Payable account.
The first line entry will be the reverse of the entry in the previous step.
If your GST Clearing entry was a DEBIT (the ATO owed you a GST refund), you will enter a CREDIT in this step. If your GST Clearing entry was a CREDIT (you owed the ATO for GST collected), you will enter a DEBIT in this step.
Enter details of any PAYG obligation (as advised by the ATO from time to time) in Row 2, selecting the account 2-1101 Income Tax PAYG Instalments Paid.
It is important to enter PAYG instalments paid correctly, as you will want to claim a credit for these payments on your Fund income tax return.
In Row 3, select the account 6-1010 Tax Payable and enter the total balance.
If your total debits exceed credits, you should enter the balance in the CREDIT column. You will need to pay this amount to the ATO.
If your total credits exceed debits, you should enter the balance in the DEBIT column. You will claim this amount as a refund from the ATO.
Check that the Out of balance figure at bottom left is 0.00 and click ADD JOURNAL ENTRY to save.
To enter your payment to the ATO or receipt of a refund, please refer to Sample Journals: Payment/Refund of BAS.
