What QuickBooks Program will suit my business?

What is GST?

Steps you should take when  Preparing BAS in MYOB

What is Double Entry Bookkeeping?

What rates do I use for Annual Leave and Sick Leave?

                Annual Leave

                Sick Leave

                Note for an hourly rate divide the rate by 38

What is the definition of an employees for superannuation and payroll tax purposes?

                Employees

                Contractors

How do I know which GST code to use?

                Good rule of thumb is make sure that you have an invoice for every purchase and that GST in shown on the invoice. No gst shown on invoice, no claim.

Cheat Sheets for GST codes for MYOB and QuickBooks

What is Fringe Benefits Tax?

What is Capital Gains Tax?

What is WET Tax? and WET Rebate?

The Top Five GST Bookkeeping GST Mistakes

Supporting Notes

1.Cheat Sheets for GST codes for MYOB and QuickBooks

Sequence of Preparing BAS in MYOB

Step 1.      Reconcile Bank Accounts, and Credit Cards

Step 2.      In MYOB use Company Data Auditor to check if GST codes are correct.

Step 3.      Also use the GST Detail Report to double check the GST codes are right.

Step 4.     Print out the Employees Activity Summary to double check against the BAS.

Step 5.     Print out the GST Summary Cash.

Step 6.     Print the BAS

 Step 7.     Very Important Lock the period

Bookkeeping may not be the most glamorous of jobs but it is necessary to keep your business ticking over nicely and the tax man at bay. Here are five common GST bookkeeping mistakes that can be made when doing DIY bookkeeping.

Claiming GST without valid tax invoices

Under Australian tax law, you can claim a GST credit for purchases that cost in excess of $82.50 (including GST) but you must be registered for the GST and have a valid tax invoice (or recipient created tax invoice (RCTI). If you use an incorrect or incomplete tax invoice to claim a GST credit, the GST credit may not be allowed.
To claim GST credits for purchases that cost $82.50 or less (including GST), you must keep documents such as cash register dockets, receipts or invoices to support your claims. You must also keep your tax invoices and other GST records for five years.
To find out more about tax invoices, contact the Australian Tax Office.

Claiming GST without realising that your supplier is not registered for GST

A business in Australia is only required by law to be registered for the GST if their GST turnover is $75,000 or more ($150,000 or more for non-profit organisations) and/or if you provide taxi travel as part of your business, regardless of your GST turnover. Taxi travel means transporting passengers by taxi or limousine for fares.
However, a business with less than less than $75,000 ($150,000 or more for non-profit organisations) can also opt to register for the GST.

Your supplier must be registered for GST before you can claim a GST credit on a purchase. Ask the supplier whether they are registered for the GST or ring the Australian Tax Office for more details.

Claiming GST credits for full amount of purchase when goods are used partially for private purposes

You are allowed a partial GST credit for the GST you pay in the price of things you use partly for business purposes and partly for private purposes such as a motor vehicle.

The amount of the GST credit you are entitled will depend on how much you use the purchase for business purposes.

In addition, if you account on a cash basis and have not paid for the purchase in full, you can only claim a credit for the GST included in the amount you have paid.

Short-changing yourself by not claiming valid GST tax deductions

Business owners often pay for expenses out of pocket or with their own personal credit card then make the mistakes of failing to track these expenses. They may then fail to submit the expenses to the company for reimbursement or lose tax invoices.

A qualified bookkeeper or accountant will be able to track all expenses, keep up to date with all current tax legislation and be able to advise you what GST you can claim so you can receive the maximum rebate from the government come tax time.

Not keeping accurate GST records

The stereotype of a small business owner keeping their invoices in a shoebox unfortunately still rings true for a lot of small business owners. By employing a bookkeeper, using commercially available software used for bookkeeping records and keeping GST records up to date, you will be able to monitor your GST and simply your Business Activity Statement (BAS).

GST is claimed when you lodge your BAS and the exact period you claim it will depend on whether you account for GST on a cash or accruals basis and your annual turnover.

By monitoring your GST and keeping accurate records, you will be ready to lodge your GST claim on time and reduce any tax liabilities.

There are many advantages to having a bookkeeping service and just one of these is to make your GST less taxing and make it easier for you to record all your GST transitions and claim for all legitimate GST deductions. By leaving it to the experts, you can ensure your GST is done correctly and on time and you can concentrate on running your business

10th January 2010