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Are You Making these GST Mistakes in Your Bookkeeping?

Being Jack of All Trades can land you in hot water with BAS

find a bas agent in your local area
Don’t submit inaccurate financial documents by trying to do everything yourself by way of bookkeeping.

IT’S PERHAPS EASIER TO do your own bookkeeping these days than it used to be; particularly if you’re using a cloud accounting program like MYOBXero or QuickBooks, which are among the easiest, yet robust, accounting applications currently on the market.

But even so, there are many aspects of Australian tax that, while accounting software makes it possible to carry them out yourself (like business activity statements, for example), it’s not a good idea unless you really know what you’re doing. Here are the three GST mistakes nearly every business owner makes in their bookkeeping.

Claiming GST twice

This is most common when a business has vehicles, machinery, plant equipment, etcetera that are either being leased or are under hire purchase. The business owner’s accountant will typically claim the full GST component for in the first quarter that the business purchased the equipment, but confusion generally sets in when it comes to recording regular monthly payments.

Very often the business owner will record it as GST or a capital expense, and because both show up in their BAS reporting sheet, they end up claiming the GST twice.

Recording GST for all expenses

There are many expenses that do attract GST. They include:

  • Motor vehicle registrations
  • Bank charges
  • ASIC fees
  • Paypal transaction fees
  • Interest and director fees / drawings.

Claiming GST credits on purchases from suppliers not registered for GST

Not all business owners are registered for GST, and although they should state somewhere on their invoice that no GST has been charged, oftentimes they’ll leave you to assume that. As a general rule of thumb, if the invoice doesn’t show an amount in the GST column, there’s a good chance the supplier isn’t registered. To make sure, though, visit the ABN Lookup Page and search their ABN.

Accounting software is easier, but Aussie tax remains as complicated as ever

Even though MYOBXero and QuickBooks are among the most user friendly accounting software applications on the market, Australia’s tax laws remain as complicated as they’ve ever been. So while you can do your own data entry (reconciling your bank statements), it’s a good idea to hire a BAS or Tax agent to look after the more complicated aspects of your tax and BAS requirements.

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Want to learn or brush up your cloud accounting and bookkeeping skills?

At EzyLearn we offer online training courses to help you up-skill and find employment. Choose from our range of online accounting software courses, as well as business start up and management courses, to marketing and sales courses — or update and further your skills in a range of Microsoft Office programs (ExcelPowerPointWord) or social media and WordPress web design). Many of our courses come with a ONE LOW COST for ALL SKILLS LEVEL option. 


Need help finding a BAS or TAX Agent?

find a local bookkeeper

National Bookkeeping is an online directory of local bookkeepers looking to add to their customers. Visit National Bookkeeping to find a suitable and experienced person available to work in your area, or able to work anywhere in the cloud. Alternatively, if you are a bookkeeper looking to expand your client list or find contract work, you can register and become part of our network for free


 

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New MYOB Training Content available for all students

MYOB Training Course Bank Reconciliation Tutorial Screen

If you are enrolled into our online MYOB training course you’re probably aware of our LIFETIME access feature. You might also recall that this feature enables you to log in at any time and have access to any new or updated content that we create.

We’ve just created training video tutorials for our MYOB bank reconciliation course!

The training workbook for the bank reconciliation course contains a project where you can create a new company file from scratch, import an accounts list (Chart of Accounts), import transaction journals and then enter your own transactions to complete a bank reconciliation. It’s a very satisfying feeling!

Here is a list of the 9 new training videos we created. If you are a student you can simply click on each video, sign-in and start watching.

  • Section 1 Video 1 – Export and Import using MYOB
  • Section 1 Video 2 – Working with Read Only MYOB data files
  • Section 1 Video 3 – Exporting Accounts List and Transaction Journals
  • Section 1 Video 4 – Exploring Exported MYOB Accounts list Data
  • Section 1 Video 5 – Create a new training company datafile
  • Section 1 Video 6 – Importing an accounts list into a new MYOB data file
  • Section 1 Video 7 – Importing the Transaction Journals into a new MYOB data file
  • Section 1 Video 8 – Deleting duplicate accounts and changing linked accounts
  • Section 1 Video 9 – Setting Linked Accounts for GST
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    As part of our continuous improvement process we are now hosting our videos on a dedicated video hosting platform and the videos can now be paused and played and you can enable them to take up the full screen for easier viewing.

    Happy Learning!

    To learn more about our online MYOB training course and the fantastic new features like LIFETIME membership, EzyLearn Q&A and more visit: http://ezylearnonline.com.au/courses/myob-training/

    [button link=”http://ezylearnonline.com.au/courses/myob-training/”] MYOB online training course[/button]