Manage taxes in a cash basis taxpayer

Viindoo Accounting Software provides the Cash Basis feature to help your business easily record taxes incurred when they are defined as valid according to the cash basis accounting method.

Requirements

This tutorial requires the installation of the following applications/modules:

• Viindoo Invoicing

• Accounting & Finance Management

Related settings

To use the Cash Basis feature, navigate to Accounting ‣ Configuration ‣ Settings and select Cash Basis.

Warning

Only users with administration settings rights can access this interface.

After selecting the Cash basic function, the system automatically adds Tax Cash Basic Journal. This journal records taxes incurred while using the cash basis accounting method.

Then press Save to record the configuration.

Navigate to Accounting ‣ Configuration ‣ Taxes to modify the taxes settings.

On the tax, pay attention to the followings:

• Advanced Options tab:
  • Tax Exigibility: Select Based on Payment.
  • Cash Basis Transition Account: This field appears when you select Based on Payment. You need to select a created transitional account to record the provisional tax amount once the invoice is posted and before recording the payment. Steps to create a new tax account on Chart of Accounts.

Note

A similar configuration is required for other sales and purchase taxes that your business needs to manage.

Manage cash basis taxes

With the cash basis taxes management, the taxes incurred on unpaid invoices and vendor bills will be recorded in the transitional account.

Once the invoice/bill is paid, a journal entry recording the transition of taxes from the transitional account to the main account will be created.

You can navigate to Accounting ‣ Accounting ‣ Journal Entries to group by Journal to easily review this newly created entry.

See also

Related Article

• Tax reports using tax grids

• Manage the price including or excluding taxes

Optional Module

• Accounting Reports - Vietnam Accounting

• Accounting Reports