Tax can be complicated so we have kept it simple for cashbucket. The best way to account for tax is to treat it like an expense and use the forecasting in cashbucket to predict when you will need to pay tax and how it will impact your cash position.
Example 1 – GST
- You pay GST every 2 months.
- You can create an expense item in cashbucket with a bucket called “Tax” and a Description of “GST” that has a frequency of 2 months.
- Estimate what your GST amount is based on previous tax periods or use cashbucket to generate it for you based on your accounting history.
Example 2 – company tax
- You pay company tax once a year.
- You can create an expense item in cashbucket with a bucket called “Tax” and a Description of “Company tax” that has a frequency of 12 months.
- Estimate what your company tax amount is based on previous tax periods or use cashbucket to generate it for you based on your accounting history.
