LodgeiT

LodgeiT supports both cash and accrual accounting methods for tax reporting, allowing flexibility based on entity type and ATO requirements. Learn more Cash basis records transactions when cash changes hands, while accrual basis recognizes income/expenses when earned/incurred.

LodgeiT Implementation Steps

Cash Basis Setup

• In Trust/Company returns: Select "Import Financials on Cash Basis" during data import from Xero/QuickBooks.
• Manual adjustment: In worksheets, exclude debtors/creditors via GST analyzer or depreciation tools.
• BAS-specific: Use ATO prefilled activity statements; LodgeiT auto-pulls and converts if cash-elected.

Accrual Basis Setup

• Default for imported financials; verify in Entity Settings > Accounting Method.
• Adjust non-cash items: Subtract opening/closing debtors/creditors in Income/Expenses worksheets.
• Video guide Cash Basis and Accrual Method for Company, Trust, and Partnership: Show debtor/creditor workarounds for trusts.

ATO Rules (2025-26 Updates)

• Businesses <$10M GST turnover can elect cash for BAS/income tax alignment.
• Trusts/SMSFs: Cash often preferred unless complex inventory.
• LodgeiT validation: Flags mismatches during form completion; use "Validate" before lodgment.
• Recent changes: Enhanced SBR rules require consistent method declaration; auto-prefill honors elections.

Common Issues & Fixes

• Mismatches: Re-import financials or use GST Analyser for BAS reconciliation.
• Automation: Enable "Pull activity statements" in client settings for seamless ATO sync.

Select based on your practice needs—cash simplifies for BAS agents, accrual for audit-ready statements. For FY2026, confirm elections in ATO portal before LodgeiT prep.

Related Article:

How to revert accrual reports to cash for Individual Tax Return (ITR) 

How to revert accrual reports to cash for Trust Tax Return (TTR)

How to revert accrual reports to cash for Partnership Tax Return (PTR)

How to revert accrual reports to cash for Company Tax Return (CTR)

Cash vs. Accrual Reporting in Special Purpose Financial Reports (SPFR) 

GST Reconciliation - Cash GST reporting and Accrual accounting