Larger businesses (turnover more than $2 million) have to use accrual accounting for GST purposes, but smaller businesses have a choice. Both methods have advantages and disadvantages, so it is up to the individual business owner to study the implications and make a decision.
You will need to double check with your accountant which method best suits your company.
Cash Basis GST applies as transactions are recorded when cash actually changes hands. Your business income and expenses are recorded when they are paid, not when you issue or receive an invoice.
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If you are running Cash Basis GST it will not be easy for you to balance back to Readysell Accrual General Ledger. |
Ensure you have notified Readysell before you go live as to whether you are Cash Basis GST or check the system reference yourself. GST
Create a Folder on the Server for the GST Reports and a Sub Folder for Each Quarter if you wish to archive the reports. This is optional as reports can be run at any point in time.
GST Items Cash Basis List View
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