3 YEARS TAX RETURNS OUTSTANDING
I have taken over a SMSF which is three years behind and nothing has been lodged. I have input all the information for the various years. Just cheking that is is all good to create entries and close the year and then move on to the next year. I will need to reverse entries and reopen to lodge each year once it is audited. Just want to make sure there no unforseen consequences in doing this. I will then create enties and close once each year tax return is lodged.
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Official comment
Hello Joyce,
Thanks for reaching out! Happy to confirm the process for you.
Yes, that sequence works in Simple Fund 360. For each financial year: complete data entry, run Create Entries, then Close Financial Year to roll forward into the next year. Repeat for each of the three outstanding years.
Once a year is closed and audited, you can lodge that year's tax return directly, no need to reverse entries or reopen the year, provided nothing needs to change. Reversing and reopening is only needed if the audit finds something to correct.
If a correction is needed
Reopen the year using Reopen Period (see How Do I Re-Open a Financial Year?), which makes Reverse Entries available again (see I cannot see the Reverse Entries link under Period Compliance). Reverse, correct, then re-run Create Entries and Close Financial Year.Note: since balances roll forward from year to year, correcting an earlier year after later years are already closed means those later years will also need reopening, reversing, and recreating to reflect the update.
Once a return is lodged, Reverse Entries is no longer available for that year. A correction at that point needs to go through the Amended Annual Return process instead.
So to answer your question directly: yes, it's fine to create entries, close the year, and move on, you only need to reverse and reopen a year if something in it needs to change.
Hope that clarifies things! Let us know if you have any further questions.
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