Most commonly asked questions
As a bookkeeper we are asked questions all the time from what receipts to keep to when GST registration is required. This page is dedicated to answering some of those questions and providing information that may be of use to our clientele.
If you have a question or would like to clarify something please do not hesitate to contact us.
- Do I need to register for GST?
- GST, what exactly is it?
- Breakdown of the type of records that you will need to keep.
- Keeping a proper record of your business income and/or expenses.
- Is your bookkeeper registered?
Do I need to register for GST?
You must register for GST if:
– your business has a GST turnover of $75 000 or more
– your non-profit organisation has a turnover of $150 000 per year or more
– you provide taxi travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover. This rule applies to both taxi owner drivers and people who just rent a taxi.
If your GST turnover is below the threshold, registering for GST is optional. However, if you choose to register, you generally must stay registered for at least 12 months.
If you are not registered for GST, check each month to see whether you have reached your threshold. You must register within 21 days of reaching the threshold.
Back to top
GST, what exactly is it?
The Goods and Services Tax (GST) is a broad-based tax of 10 per cent on the sale of most goods and services sold or consumed in Australia. GST is collected by registered businesses.
If your business is registered for GST, you will have to collect some extra money (one-eleventh of the sale price) from your customers and pay it to the Australian Taxation Office (ATO) when it is due.
GST applies to most businesses across Australia and it's highly likely that your business will be affected by the tax.
Back to top
Breakdown of the type of records that you will need to keep.
INCOME
– sales invoices, including tax invoices
– sales vouchers or receipts
– cash register tapes, credit card statements
– bank deposit books and account statements
EXPENSES
– purchase/expense invoices, including tax invoices
– purchase/expense receipts, which include an ABN
– cheque butts and bank account statements
– credit card statements
– records showing how you worked out any private use of something you purchased
Back to top
Keeping a proper record of your business income and/or expenses.
It is important to keep proper business records and record all of your GST transactions. If you don't keep proper records you might claim the wrong amount of GST credits (either too much or too little) or not record all your sales and purchases.
Record keeping errors tend to affect mostly small businesses and business that are growing quickly. Accounting and record keeping errors can put your business at risk.
For more information on what is required by the Australian Taxation Office visit their site at: www.ato.gov.au/Business
Back to top
Is your bookkeeper registered?
Legislation was introduced in 2009 making it illegal to charge a fee for a bookkeeping service such as reconciliations, data entry and BAS preparation unless you are a registered BAS Agent; this applies to giving advice also.
Check the BAS Agent register here to see if your bookkeeper is registered: http://www.tpb.gov.au/tpb/agent_register.aspx
Back to top