Cash Flow Boost Estimator
As part of the process of providing budgets and forecasts for clients we needed a way to easily calculate the cash flow effect of the cash flow boost.
The amount and timing was difficult. We started manually and each time we completed we needed to start again and was confusing.
So we went to the effort of creating a spreadsheet that we could put in how often clients lodge and pay PAYGW and the actual or estimates of the future PAYGW.
For those that are interested in seeing when the money (in this case a credit or reduction in amount owed) will arrive this worksheet will help.
The recommended method
- Confirm the period of your PAYGW remittance – Monthly or Quarterly
- Monthly = more than $25,000 of PAYGW in a year
- Open the above worksheet
- Choose Monthly or Quarterly from the drop down list
- Complete the Yellow fields ONLY
- Estimate or use actual for your March PAYGW remittance
- Estimate your PAYGW for each month or the quarter
The bottom part of the worksheet will then report the estimated or actual amount of cash flow boost and when the credit will happen.
Note is called a cash flow boost and not a cash boost. The reason is that a credit will be applied to other ATO liabilities first and then the balance paid out as a refund. The ATO were stating that if a refund is due then will be payable by them 14 days after the due date for lodgement – so around the 10th of May.
Rob Wall CA M Tax
Wall Business Services – “We Make Numbers Work”