Question:
Company paid tax on retained earnings so I have added below journal in my accounting system as at 30.06.2021:
DR Income Tax Expense (expense)
CR ATO Tax Payable (liability)
Just wondering, Do I need to re-import my 2021 financials into LodgeiT? Or, when I import my fiscal year 2022 financials the retained earnings and any future distributions of the carried forward profit (after tax) would automatically show up franking credits ?
Answer:
Yes, it will automatically show up franking credits. To get the accounts in LodgeiT to match 'QuickBooks Online' Accounts, reimport after journal is necessary. BUT, it's the tax return that must be filled correctly to ensure the correct tax liability. Franking account tool can be used to update the tax return. Balances on the franking account tool will be reusable in 2022. We suggest to stay focused on 2022 year.