Understanding the Difference Between the Retail Management Report and Tax Reports
It's common to notice a difference between the figures in your Retail Management Report and your Tax Reports. This discrepancy is primarily due to how layby sales are treated in each report.
How Layby Sales Are Treated
Retail Management Report
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Includes the full value of a layby sale at the time the layby is created.
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This approach reflects sales activity and is useful for business performance tracking.
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Even if the customer hasn't completed all payments, the entire sale is counted immediately.
Tax Report (Cash System)
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Only includes the value of payments actually received.
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This aligns with cash-based tax reporting, where you only pay tax on income you’ve physically received.
Tax Report (Accrual System)
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Excludes layby sales until the sale is fully completed.
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Accrual-based tax reporting recognises income when the full transaction is finalised—not before.
Why the Difference Exists
These differences ensure you're not paying tax on money you haven’t yet received or on sales that aren’t final. The system is designed to protect you from being taxed prematurely.
Which Report Should You Use?
If you’re unsure which tax system your business uses or need further clarification, please contact Swim support or your accountant for assistance.
