Reconciling a payment to an opening balance

Problem reported by Paul Walpole 8 years ago

Hi

We started using Clearbooks after 2 years of trading and running accounting on spreadsheets. My accountant at the time set us up on the Clearbooks system, however I'm struggling to reconcile a payment we made to HMRC for Corporation tax.

The accountant as far as I can tell has set it up as a opening balance (see pic attached) and Corporation Tax is set as supplier but when I go to reconcile the payment from the Bank account I cannot find Corporation Tax as a supplier to pay?

Can you advise.

Thank you

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5 Replies

Hi Paul - it's the balance sheet one, it would have gone through the P&L account last year with the debt going to the balance sheet one, now you are paying that off.

8 years ago

Hi Paul,

Sorted - thank you for your help

8 years ago

Thanks Paul,

Thats starting to make sense - whilst setting up the "supplier" if its for past CT am I entering the account as the P&L one or BS?

Cheers

8 years ago

Hi Paul

It's the account name "Corporation Tax" you're looking at not a supplier.

So just set up your own supplier for say "HMRC C Tax" and select the "Corporation tax" account when entering the payment.

Be careful though as you may see two corporation tax accounts. There's one in the P&L section and another (above) in liabilities on the Balance sheet section. To distinguish the two many rename them "Corporation tax charge" and "Corporation tax liability"

With regard to suppliers. Some people use a generic HMRC for all bills/payments, ie for PAYE, VAT and C Tax, others set up three separate suppliers.

8 years ago

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