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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Click on Filters Tab in the detail area
Click on All GST Items. If there is no Filter/query on this one, Copy it and create a filter to stand for Cash Basis GST.
Query/Filter will need to be set up like this :
Expand title Show Me 
Highlight the Query to stand for Cash Basis
All you need to do is change the "Cash Basis End Date" to be the first day of the next month and Click on Save in the Top Ribbon
Then Click on the action button in the detail area 'Show report using filter'
Expand title Show Me 
Report will appear to screen
Check that this report lines up to the GST Items and GST Batch when you extract the batch.
Leave the report on the screen
Once you have extracted the GST Batch and reviewed the data, compare the gst batch to the detailed list report and the list view on the gst items.
Once you are happy that the results on this report are correct feel free to export it and save it. This is optional
Click on 'EXPORT TO" BUTTON
Save the report in the GST Reports Sub folder for that Quarter.
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