Hi,
I would like some feedback on the correct process of doing a BAS journal, this is a bit of a contentious topic in our office.
BAS is raised, but the client may not approve for a week.
What date should the journal be raised?
a) as at the date the BAS was prepared? or
b) the date the client approved for lodgement?
I journal out the small change not reported to the ATO we only report whole numbers, however, I have been taught from a previous accountant to journal out the small change (cash or accrual client) to either bank fees (business) or drawings (sole trader).
i.e. GST on sales is 52,495.23 but we report 52,495 to the ATO.
If the $0.23 is not journaled out of the GST account the GST Rec never balances as it is continually rolled over into the next period.
I've been taught that this should be cleared as like when you do the ITR you only report in whole dollars and any cents is not reported into the following financial year.
Which is the correct method.
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