The reconciliation section of a tax return allows the accounting income to be reconciled to the taxable income. The reason for this is that certain income items may not be assessable or the amounts may differ. Similarly, with expenses, some accounting amounts may not be deductible or amounts may differ.
It is designed to be used with data from financials and this section is informational only.
To explain the Reconciliation
It is quite common that accounting and tax facts may not be the same, particularly in respect to investment income. LodgeiT Reconciliation demonstrates how tax facts are arrived at from accounting facts. In the example below, the noted accounting facts are backed out and the tax facts are included.
The reconciliation section will only be relevant if you've imported financial statements.
LodgeiT forms are optimised for autofill from downstream accounting systems, not manual fill processes.
LodgeiT Reconciliation demonstrates how tax facts are arrived at from accounting facts. Click below for the detailed information -
Reconciliation for Company Tax Return
Reconciliation for Small Business Entity (SBE)
Reconciliation for Partnership Tax Return
Reconciliation for Trust Tax Return