Difference between pages "Accounting Process" and "GST"

From Bookkeepingpedia
(Difference between pages)
Jump to: navigation, search
 
 
Line 1: Line 1:
Whether you are using leather bound books, excel or software, the accounting/bookkeeping process remains the same.
+
====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.
+
[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 Bookkeeper and a great Bookkeeper.
+
"Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia."
  
All accounts must be either debited or credited '''NOTE:''' Some accounts are increased by debits, others are increased by credits
+
The "most" in this statement is the most misleading word there is.
  
{| class="wikitable" style="width: 25%;"
+
There are '''so''' many variations, exemptions and interpretations.
|-
+
|'''Account''' || '''Increased By''' || '''Decreased By'''
+
|-
+
|Assets|| ''Debit''|| ''Credit''
+
|-
+
|Expenses||''Debit''||''Credit''
+
|-
+
|Liabilities||''Credit''||''Debit''
+
|-
+
|Equity||''Credit''||''Debit''
+
|-
+
|Revenue||''Credit''||''Debit''
+
|}
+
  
These are generally the steps taken:
+
Examples:
* [[General Journal]] - All the financial transactions are recorded in chronological order where each transaction affects at least two accounts, and they ''must'' balance.
+
* 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
  
* [[General Ledger]] - The transactions are now posted to the accounts identified in the Journal entry
+
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)
  
''' <span style="color: red"> more to come'''
+
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)

Revision as of 03:44, 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)