GST Reconciliation - Cash Basis


Continuing the discussion from How to enter a BAS payment:

I’m currently operating my business on a Cash Basis with the ATO and paid my GST to the ATO from one of my bank accounts on August 6.

The amount paid was $457 and it was entered into Manager under the “Tax Payable” Liability Account.

So far this month, my GST calculation is showing an amount around of $338 payable.

The reason for my post is that when I look at the “Summary”,it’s showing an amount close to $795 as “Tax Payable” under the “Other Liabilities” heading.

Obviously, it seems as though this figure is based on last month’s GST (that’s already been paid) added to what is owed (so far) for this month.

What I don’t understand is, why the figure wasn’t adjusted when I paid last months payment to the ATO.

Once again, I look forward to hearing back from someone to tell me where I am going wrong :smile:


Summary always shows figures on accrual-basis. So if you pay taxes on cash-basis, the figure on Summary page will have no practical meaning.

As for why the figure didn’t decrease when you paid ATO, how did you categorize payment to ATO? Did you allocate it to Tax Payable account?


Hi Lubos,

Here’s a screen shot of the transaction… (I also have “Australian Taxation Office - BAS Payments” set up as a supplier so could that be where the problem lies) ?


This transactions should be obviously posted to Tax payable account as at 06/08/2015.

When you click on Tax Payable figure on Summary tab, do you see 457.00 posted there as at 06/08/2015?


Yeah Lubos, it does show up but I’ve just realised that maybe, the variance is due to the transactions (invoices and payments) posted on or after August 1, as the BAS payment was only based on the July figures.
Does that sound as though it may be the situation ?