This help note applies to the following Zone(s) only: Australia

Have you checked if you are “Accruals” for Income Tax purposes even though you are “Cash” for GST?

Quite often people think they are “Cash” reporting for everything but later find as they get more experienced with their organisations accounting that they are actually Accruals for reporting Income and Expenses for Tax purposes (Company Tax) but are Cash for GST purposes. This is quite common and we suggest users check with their accountant or the ATO.

Cash and Accruals Reports

Reports like the P&L have both Cash and Accruals versions while the Balance Sheet by its nature reports assets, liabilities and equity on an Accruals basis so there is only one version. Balance Sheet reports display what you owe and what you own even if in a Cash accounting sense these items haven’t been paid for.