Being able to grow your business so that it requires GST registration is a great achievement. It does however bring some complications, things that you need to be aware of to ensure you handle your GST requirements effectively.
Tip 1: Make sure your Chart of Accounts are updated to reflect GST
Depending on which bookkeeping system you use, updating your Chart of Accounts varies. QuickBooks Online is relatively simple to update, read our post on how to turn on GST tracking for a simple step by step process to follow.
It is important to note that GST is not setup by default in QuickBooks Online.
Tip 2: Create a separate GST account
Cash flow is the number issue that most businesses face, the issue is further complicated when BAS is due. Often businesses will spend the GST amount accrued and then struggle to find it when it’s due to be paid.
The easiest solution? Open another bank account that is in your business name. Transfer all GST monies into this account. If you open a high interest business savings account then you can accrue some interest on the GST.
Tip 3: Notify your customers that you are now GST registered
It is important you notify your customers that you are now registered for GST. If you don’t your customers may under pay your invoice.
Let us take care of your books so you can concentrate on what you do best. We are offering a free 30-day trial on QuickBooks Online. To get started simply contact us today.