In TaxTank, bank transactions are captured for each financial year to ensure tax rules and estimates are accounted for correctly. However, sometimes a bank transaction may land in the wrong financial year due to pending or clearing delays from Basiq.
For example, a rental payment included in your June rental statement might have a bank transaction date of 1st July when the money was received. Similarly, you might have paid for an oven repair on the 30th of June, but the credit card bank transaction was processed on the 2nd of July.
In these situations, you can make adjustments to ensure the payments are accounted for correctly. Let's run through both examples to explain.
Example 1 - Rental Payment in Wrong Financial Year
Step 1 - Add the Income in the Correct Financial Year
Ensure you are in the right financial year for the income.
Head to the relevant property and select the 'Income' tab.
Select 'Add Income' and input the relevant information from the property schedule.
Step 2 - Clear the Bank Transaction
Go to the financial year with the bank transactions.
Allocate the bank transaction to the 'Personal Income - Other' category.
This will clear the bank transaction without impacting tax in any way.
Example 2 - Expense in Wrong Financial Year
Step 1 - Add the Expense in the Correct Financial Year
Ensure you are in the right financial year for the expense.
Head to the relevant property and select the 'Expense' tab.
Select 'Add Expense', choose 'Cash payment', and input the relevant information to record the expense.
Step 2 - Clear the Bank Transaction
Go to the financial year with the bank transactions.
Allocate the bank transaction to the 'Personal Expense - Other' category.
This will clear the bank transaction without impacting tax in any way.