June is fast approaching and it will not only be BAS time again, but the end of the Financial Year..
GST and what has it and what doesn't is a common area of confusion for my clients! And fair enough too.. like the English language there are so many "exceptions to the rule"...
Here are three common mistakes in coding GST:
1. Subcontractors: It's easy to check is your subbie is registered for GST - just search their ABN on http://abr.business.gov.au. If they are registered INCLUDE GST, if they aren't DON'T. Simple as that! ** remember sometimes a subbie will incorrectly include GST on their invoice when they shouldn't.
2. Insurance: Most insurance DOES include GST, however Stamp Duty DOESN'T. Always check your invoice and split the transaction into two lines GST free and GST included to calculate the correct GST component. ** Check out our "splitting transactions on two lines" blog to learn how!
3. Bank Fees: Commonly coded to GST free, TECHNICALLY Bank Fees are actually Input Taxed! If you are working with XERO you can use their handy 'Find and Recode' feature to quickly change ALL bank fees TAX codes in a few clicks!
Still gibberish?! Never fear, let Taste.E take care of it for you so you can focus on driving your business forward and doing what you love! We love NUMBERS and with our attention to detail and experience traversing many industries we'll complete a GST audit and lodge your BAS for you - you won't even need to think about it! Book a FREE consultation today.