If you’re a company that converted from FreeAgent, the automatically posted journals relating to corporation tax won’t have been converted. The only one of these journals we do convert is where the year end has completed but the corporation tax payment due date is in the future.
QuickBooks Online’s opening balance journal may also need amending for any opening balance on the Corporation Tax Liability account. The Trial Balances should then agree.
Access the Corporation Tax page in FreeAgent to review the calculations of each year’s corporation tax.
Review the “liability” figure for any historical year with a payment due date in the past. The liability for each of these years should be entered in QuickBooks Online as a journal. The “Balance Owed” at the last year end before the start date of your conversion will need entering in QuickBooks Online’s opening balances. This will be covered later on.
The example to the right shows how you could create the Corporation tax expense account although customise this as you require.
Once you have the necessary accounts, add the journal to QuickBooks Online. Choose the +New button and then select Journal entry.
The journal date in QuickBooks Online should be the same as the “Dated on” date from FreeAgent. The liability is posted to both the Corporation tax liability and Corporation tax expense accounts in QuickBooks Online.
Enter a journal in QuickBooks Online corresponding to the corporation tax liability of each historical year in FreeAgent where the “Payment due” date is in the past. Do this for each year within your conversion period. If there’s multiple journals to enter in QuickBooks Online, you may find it useful to copy one journal and amend the date and amounts as necessary.
