I’ve been using the Tax Reconciliation report for quite a while now and I find it very handy.
However, it has always been a little bit confusing and I couldn’t quite place my finger on why that is until now.
If you look at the breakdown in the report, I think you would agree too:
The line “Closing balance” isn’t really the closing balance but rather the balance before new tax liability. In this particular case, this turns out fine because there’s only one tax account “VAT Payable” and the unnamed grand total serves as the de facto closing balance.
But when you have multiple tax accounts, you can’t tell the closing balance of individual tax accounts and this is made even more confusing by the misleading row label that says “Closing balance” when in fact it isn’t.
I have though of a couple of possible solutions but I’d like to hear what the Manager community thinks first.