Here are my rough notes on reconciling a running balance account.
Do you have any comments on this method?
The Australian Taxation Office may issue you with two separate statements, the Integrated Client Account and the Income Tax Account. It is necessary to reconcile each account, and here is how I suggest you set this up.
Create one supplier card for the Australian Taxation Office (ATO) if you don’t already have one.
Set up three new liability accounts. The first account should be a header or a title account called ATO Liabilities. The second account and third account should be a credit card type account (MYOB terminology) and will represent the relevant statements from the ATO; Integrated Client Account and Income Tax Account.
If there is an opening balance it may come from the end of financial year (EOFY) general journal entry. In the scenario I worked on, I needed to enter the following journal entry.
Trade Creditors DR $3000
ATO Integrated Client Account CR $3000
When a BAS or IAS is prepared, the transaction can be processed through Spend Money or Receive Money depending on the movement. The payment should come from either the liability accounts the Integrated Client Account and the Income Tax Account. This will be simpler than through purchases or sales.
When the BAS or IAS payment is made or received, it is between the bank account and the Integrated Client Account or the Income Tax Account.
The balance of the liability accounts of the Integrated Client Account and the Income Tax Account will reflect the running balance issued by the ATO.