Category for Tax Paid

1

I’ve been playing with the Chart of Accounts and am not sure if I’ve done the wrong thing (again)

I’m operating the business on a Cash Basis and paying my GST monthly and I have also been paying some PAYG in advance as I have “spare” funds available.

I have now set up two separate accounts being one for “PAYG Paid” and another for “GST Paid” and have them both listed under Expenses and wanted to make sure that I’ve done it right.

2

When you pay GST to tax office, use tax liability account which is under Liabilities. Don’t create GST paid expense account as GST is not an expense.

As for PAYG, it is an expense so that’s fine.

3

Thanks Lubos…I wasn’t sure but I did think that I may have been on the wrong track :slight_smile: