Difference between pages "Accounting Process" and "GST"

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Whether you are using leather bound books, excel or software, the accounting/bookkeeping process remains the same.
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====GST Overview====
  
It is simply the recording of all financial transactions within a business and then organising it a meaning full way for compliance and business analysis.
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[https://www.ato.gov.au/Business/GST/ ATO GST Page]
  
All bookkeeping is still based on double entry accounting. All the software still works this way, its just that we don't see much of it anymore. Understanding the process though is one major difference between a data entry person and a great bookkeeper.
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"Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia."
  
These are generally the steps taken:
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The "most" in this statement is the most misleading word there is.
* [[General Journal]] - All the financial transactions are recorded in chronological order where each transaction affects at least two accounts (these accounts form your [[Chart of Accounts]])
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{| class="wikitable"
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There are '''so''' many variations, exemptions and interpretations.
!colspan="4"|General Journal Example
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|-
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Examples:
|'''Date'''
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* Most insurances
|'''Account'''
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* Phone bills that still include the white/yellow pages listing
|'''Debit'''
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* Food
|'''Credit'''
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* Imported goods
|-
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* Digital goods
|June 30
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* Fees and charges
|Cash At Bank
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* Australian v non Australian companies
|1,000
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* Second hand goods
|
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* Trading of going concerns
|-
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* Business to Business v Business to Consumer
|
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* Precious metal trading
| style="text-align:right;" | Office Expense
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|
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The best and only way is having a copy of the [[source document]] available to confirm GST treatment and or know the relevant part of the tax act for the required treatment (yes/no or part GST)
|1,000
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|-
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This knowledge is another difference between a data entry Bookkeeper and a great Bookkeeper (and why only registered BAS agents are allowed to provide fee for service where GST is coded)
|
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|For the purchase of a really nice stapler
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====GST Basics====
|
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|
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* Register for GST
|}
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* Work out whether your goods and or services are taxable (you can have a mixture)
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* Issue tax invoices for your all of your sales
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* Keep all of your bills for your purchases that include GST (if you cant provide the source document you cannot claim the GST deduction)
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* Account for our GST - difference between GST collected from your sales and GST paid on your purchases (don't spend it, its not yours)
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* Complete your activity statment (BAS) and either pay your GST liability or be refunded.

Revision as of 04:07, 16 November 2018

GST Overview

ATO GST Page

"Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia."

The "most" in this statement is the most misleading word there is.

There are so many variations, exemptions and interpretations.

Examples:

  • Most insurances
  • Phone bills that still include the white/yellow pages listing
  • Food
  • Imported goods
  • Digital goods
  • Fees and charges
  • Australian v non Australian companies
  • Second hand goods
  • Trading of going concerns
  • Business to Business v Business to Consumer
  • Precious metal trading

The best and only way is having a copy of the source document available to confirm GST treatment and or know the relevant part of the tax act for the required treatment (yes/no or part GST)

This knowledge is another difference between a data entry Bookkeeper and a great Bookkeeper (and why only registered BAS agents are allowed to provide fee for service where GST is coded)

GST Basics

  • Register for GST
  • Work out whether your goods and or services are taxable (you can have a mixture)
  • Issue tax invoices for your all of your sales
  • Keep all of your bills for your purchases that include GST (if you cant provide the source document you cannot claim the GST deduction)
  • Account for our GST - difference between GST collected from your sales and GST paid on your purchases (don't spend it, its not yours)
  • Complete your activity statment (BAS) and either pay your GST liability or be refunded.