I am a sole trader how do I make sure MYOB is calculating my tax to be withheld when an invoice has been paid. I have entered all my invoices so the labour part of the invoice is automatically credited to the income account and all materials for that invoice are credited to the materials acocunt (expense).
For Example:
Invoice $100 labour
Material $20
Once the payment has been received for this invoice the expense account is credited the $20 & the income account is increased by $100. I need to pay 20% of this $100 to the ATO, how do I keep track of the tax I owe to the ATO. Is there an automatic way to transfer that 20% into a Liabities account or does this have to manually journaled?
Please help
Kylie
