Tax Codes In

Understanding the Tax Codes in Reckon Accounts

- Reckon Accounts uses different tax codes for purchases to the ones that it uses for Sales.

- Although you will get reasonably ok figures out of a Tax Summary Report if you only use the one lot of GST codes (such as you would with MYOB) ie. GST and FRE, you will not get 100% accurate figures this way.

- Also you will never be able to use the internal BAS reporting system in Reckon Accounts unless you use the complete set of Tax Codes as designed for the Reckon Accounts system.

The tax codes to use in Reckon Accounts are:

Tax Codes for entering the money you receive

GST: Use this Tax Code when recording an Invoice or Sales Receipt (ie. Money received) that includes GST.

FRE: Use this code when recording an Invoice or Sales Receipt (ie. Money received) that is GST Free (you are unlikely to have much if any of this type if income).

INP: Use this for recording any Bank interest you earn from the Bank (interest earned not interest paid)

Tax Codes for entering the money you spend

Nearly all of the money you spend will be on what’s known as Non-Capital items (hence the NC… in the following tax codes. Non-Capital items are everything other than Capital purchases (which I will describe below). So these are the codes you will use on MOST of your purchases (in particular you will use the NCG tax code).

NCG: Use this code when recording a bill or cheque or Credit Card Charge (ie. Money that you spend) that includes GST. (The “G” in NCG of course stands for Gst).

NCF: Use this code when recording a bill or cheque or Credit Card Charge (ie. Money that you spend) that DOES NOT include GST. (The “F” in NCF of course stands for (GST) Free). This would be things like bank charges, donations and some Staff Amenities such as milk, tea, coffee, sugar etc.

Some times you will buy things that are CApital in nature. CApital items are your assets. (Hence the CA… in the following tax Codes). They tend to cost over $300.00 and have a lifespan of over 3 years. Capital items include things such as Tools (other than small replacement items), Equipment, Furniture, Computers and Office Equipment and spending on Improvements to your property ie. New carpets, building work, Air Conditioning units etc.

CAG: Use this for recording any purchases of Capital items that include Gst. (The “G” in CAG of course stands for Gst).

Most Capital Purchases that you make will have GST in them.

CAF: Use this code for recording purchases of Capital items that DON’T have GST in them. This would usually only be purchases of 2nd hand items (such as a 2nd hand car) from private people (not businesses). (The “F” in CAF of course stands for (GST) Free).