GST Components
MattyLinz
Member Posts: 1
Hello All
I have a question that is no doubt simple but is eluding me. I'm looking to separate my collected tax amounts (GST Australia) from my main Assets balance and to zero my liabilities column related to the Tax collected, once payment is made to the Government. So basically I want to be able to see my Main Business Account (Asset) balance and the balance of Tax owning to the Government for product sales (GST). So far I have created a GST assets account and used a Journal entry to transfer the total tax collected from the Main Business Account to the GST account - This allows me to see both accounts with real values in an Account Balance report. But..... Here is my issue. When it comes to paying the Government the Tax amount how to I. Pay Government from GST assets account turning into $0 balance and at the same time zero out the GST tax liabilities account Any help would be appreciated - especially if what i have written is the incorrect process Thanks
Comments
Hey there @MattyLinz
So the way in which Wave calculates this is using a liability account. So the money paid to the liability account is deducted by the money owed. The balance is all recorded to the liability account in Wave with the name of the tax. You can see payable and receivable in the report itself, and you can pay down the amount owing by categorizing any payments to the tax.
If you were to open up your account transactions report and take a look at the tax account here by selecting it from the drop down, you should see the debits and credits in that account.
Our sales tax report simplifies the data for you a little more than some business owners would like, I understand that may be a bit of an issue for some. But with using the debits and credits from your tax account in the account transactions report, as well as the sales tax report, you may be able to achieve what you're looking for if you were put this in an excel spreadsheet.
With that being said, we in Wave support are by no means accountants, so I would seek professional advice, or reach out to one of the pro's in our Wave pro network!
https://community.waveapps.com/categories/accounting-support-pro-network