How to reconcile an ATO account statement with your books
Reconcile an ATO account by starting with an agreed opening balance and matching every movement to a lodged amount, payment, credit or transfer. Use the same account and cut-off date in both records. Keep unexplained items in a discrepancy log instead of posting an adjustment just to force agreement.
What you’ll get from this guide: A matched statement and a short list of differences to resolve with your bookkeeper, tax agent or the ATO.
- Match the taxpayer, account and dates before comparing balances.
- Keep bank dates separate from ATO processing and effective dates.
- Investigate each difference rather than using a balancing journal.
An ATO balance and a tax control account in your bookkeeping software may cover different things. Match the supporting records before asking your bookkeeper or agent to correct the accounts.
Download the right account and period
Record the taxpayer, account name, payment reference number and cut-off date. Don't combine a company's activity statement account with an individual's income tax account. The ATO's account and payments instructions explain how to view transactions and download account information in Online services for business.
Check the filters before exporting. The ATO distinguishes processed dates from effective dates, and its account balance may include amounts that are not yet due. Keep the export's date basis written on the reconciliation. If you filter by income year, the ATO guidance currently directs you to print rather than download that view.
Use an agreed opening balance from the previous reconciliation. If there isn't one, record that as the first unresolved item. Starting from zero can hide an old debt or credit.
Fictional statement movements, expressed using a consistent debt-positive sign convention.
| Movement | Change in debt | Evidence to match | Running debt |
|---|---|---|---|
| Opening balance | $2,000 | Previous agreed reconciliation | $2,000 |
| Lodged liability | +$4,000 | Lodgement and ledger detail | $6,000 |
| Interest entry | +$50 | ATO transaction detail | $6,050 |
| Bank payment | −$3,500 | Bank reference and account allocation | $2,550 |
| Transfer credit | −$400 | Both affected ATO accounts | $2,150 |
If the books show $2,350, the unexplained difference is $200. Keep that difference visible until its source is established.
Match the movement, then its accounting treatment
Open the supporting lodged statement or assessment for each new liability. Match a payment to the bank reference and the account it reached. A transfer between ATO accounts needs evidence on both accounts; it may not create a fresh bank transaction.
Record an interest or adjustment entry even if it hasn't reached the books. Ask the responsible adviser how it should be posted. Its appearance on the statement does not, by itself, settle its income-tax treatment.
Use the balance-sheet guide to identify the book accounts being reconciled. If the books split GST, withholding and other obligations into separate accounts, reconcile the components rather than expecting one account to match the whole statement.
Compare the dates without forcing them to agree
Your bank's payment date, the ATO's processed date and its effective date serve different purposes. In the current ATO guidance, the processed date is when a transaction is finalised and the account updated; an effective date can be a debt due date or the date a refund was sent.
Keep all three fields where relevant. A payment just after your cut-off can explain a difference, but only when the evidence supports it. Write the amount and expected matching period in the discrepancy log, then check it on the next statement.
Work through the remaining $200
For the fictional difference, check for a missing opening item, duplicated posting, incorrectly allocated payment or credit in the wrong period. Don't select whichever explanation makes the balance work. Attach the bank record, statement reference or lodgement that proves the correction.
Copy the ATO discrepancy log
Copy this blank template into your own files. Your records stay with you.
Once the balances agree, save the reviewed schedule. Use the confirmed debts in your tax-reserve check. If payment is the problem after reconciliation, the payment-plan preparation guide helps assemble a realistic forecast.
Key takeaways
- Match the taxpayer, account and dates before comparing balances.
- Keep bank dates separate from ATO processing and effective dates.
- Investigate each difference rather than using a balancing journal.
Where to get help
Use the ATO's account and payments guidance for current labels and available actions. Give your bookkeeper or tax agent the discrepancy log and original exports when a balance remains unresolved.
Where to go from here
Is your tax reserve enough? Check savings against the bills
Compare the reconciled amounts with the money saved.
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General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — check the official sources linked in this guide and get qualified advice where your circumstances require it.