Question: My question is regarding MYOB Accounting and how to handle GST. I notice when you close off the end of the financial year the balances are brought forward for GST to the new year. Please advise the accepted way to reconcile the GST Collected, GST Paid, and GST Payment/Refund accounts.

Answer: The GST balances always roll forward to the new year. This is because they represent an amount that should be returned to, or claimed from, the IRD at a later date. These balances are calculated on the Invoice basis (necessary for proper accounting entries to occur) so if you are on the Payments basis for GST the amounts rolled forward to the new year are unlikely to match your next GST return. Some users like to “clear” the GST account balances after each GST return so that the individual accounts carry only the current period balances – this can be done by journal entry but is not strictly necessary. Use the GST Reconciliation report to compare your GST balances with the total of the GST transactions for the period. If you would like help in learning how to do the journal entry to clear the balances, or how to reconcile the balances to the Payments basis, you may like to ask your accountant or a certified consultants for more detailed assistance.

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