How do I record the payment of the previous year's company tax? Do I first journal the amount as a liability in the previous year then match the payment against that?

Hi -myauslan-com,

Thanks for posting in the Community!

You're on the right path in tracking the amount on a liability account and then creating a journal entry. First, make sure to create a liability account in the chart of accounts. Here's how:

1. Click on the Accounting tab.
2. Click on the Chart of accounts.
3. Click on New.
4. Under Account type choose Liability account, and under Detail type choose the nearest account describing the account.
5. Enter a Name for the liability.
6. Click on Save.

Once done, you can create a journal entry to record the transaction. To know what account to use, I would recommend contacting your accountant for this to ensure you're hitting the correct accounts and balance your books.

Post again in the Community if you have more questions. I'll be around to help you!