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.
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
From the Navigation>Financials>Tax>GST Items
A list of all GST Items will display.
Select from the Drop Down Filter Box at the top Ribbon 'GST Cash Basis View' or create your own Cash Basis GST View View Variants Button
Either way to ensure that you select the right data for the date range to reflect the BAS you are about to Submit follow the steps below:
- From the List View, Filter the field of 'Extracted' set to Unchecked or 'Extracted <> True (or equal to False)
- Then filter the 'Cash Basis Due Date' to be the date less than the first day of the next quarter. Eg if your GST Bas Quarter end date was 31/5/2016, then the filter for the cash basis due date field would be 'cash basis due date Less than 1/6/2016'
OR Click on the Cash Basis Due Date Column heading and click on the filter
Select Filter by Specific Date
The list view will display and the list will be empty
Down the Botton of the list view for GST Items Window will display a Filter, Click on Edit Filter
Change the filter to read as follows (see screen print):
Remove the line that reads 'Cash Basis Due Date is greater than or equal to ' by clicking on the X
Change the line that reads 'Cash Basis Due Date is Less than' to be the first day of the next month into the next quarter
Add to the filter by clicking on + 'Extracted Equals False'
Click on Apply
Click Ok
The system will draw to the screen, all transactions that have not been part of any GST Batch for all Cash Basis Due Date less than the 1/7/2016 as per the example above
Right Click on any one of the Column Headings and Select 'Show Report Footer'
On the Column for GST Paid and GST Reviewed in the footer, right click and Click on Sum to get a total.
Check the total of the GST Paid and GST Received Columns.
These columns should equal the value that will be reported on the Detailed GST Report and the GST Batch you are about to extract.
They should also be equal to the corresponding General ledger GST Accounts for that quarter. This also needs to be checked
GST Cash Basis Reporting - Optional
- From the Navigation>Financials> Reports >'List Reports'
- Search for 'GST Detailed Report'
Click on Filters Tab in the detail area
Click on All GST Items. If there is no Filter on this one, Copy it and create a filter to stand for Cash Basis GST.
Filter will need to be set up like this :
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'
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.
To start a GST Batch run for Cash Basis
Before Extracting a New GST Batch, check and ensure that the previous GST Batch has been posted and no GST batches are outstanding.
The system will not allow you to extract a New GST Batch until the previous batch is posted.
- From the Navigation > 'Financials'>'Tax' > 'GST Batches'
- Click on 'NEW'
- Click on 'Extract GST BATCH'
- Click on 'GST Item Set'
- First time around, Click on New to create the GST Item Set or if the set already exists just select it
- First time around Enter a Name in the Name field. E.g: Your Site Name followed by GST Cash Basis
- First time around Enter the "Start From Date" and "End At Date" ( this is the date of the gst quarter) The start date is usually back dated to some time in the past and the end date is the end date of that GST Quarter.
- Click on "save and close"
- Click on Ok to run the GST Batch for the date range you have entered. Remember to leave the start date as a back dated date and the end date to be the last day of the gst quarter
- In the Detail Area, Both a Summary Tab and Detail Tab will display the result. Check this thoroughly
- Check that the transaction types have the correct gst code and are in the right bas code.
- If any transactions need to be corrected please correct and re extract the gst batch on the same GST Batch run. If any of the Transaction Types are in the wrong bas code area, check that the raw data has the right tax code that is the product code. Then all you need to do is export the summary report and cut and paste the Transaction Type/Tax code into the right Bas Code Area and check the totals .
- Once all data looks correct save it clicking on "SAVE ".
GST Reports
- Once you are happy with the GST Batch Result and you have compared the Batch result to the GST Detailed Report, you can run the GST Summary Report and The GST Calculation Worksheet.
Click on Show in Report
- Select GST Batch Summary to start
- If you need to make changes and move the transaction types into the right Bas Code area, Click on 'Export To' and select XLS
Cut and past the Transaction types with the wrong tax code into the right Bas Code area and save it into the GST Sub Folder for that Quarter. - Click on 'Show in Report' and select 'GST Calculation Worksheet' . The worksheet is NOT to be Submitted to the ATO it is purely for your use.
Ensure you save the worksheet into the gst sub folder. - The GST Batch will remain with a Status of OPEN until you have reviewed the data.
- If you are happy with the result, go back to the GST Batch, Highlight the Outstanding GST Batch and Click on "POST GST BATCH".
By Posting the batch, the system upates the GST Items within that Batch and sets the flag of ' Extracted' to be True.