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5 common GST Mistakes - a Registered BAS Agent will save you money

1) Who needs to register for GST?
Your business will need to register for GST if your annual turnover is $75,000 or more. You have a choice to register or not if it's less than that.
You must register for GST if you reach the $75,000 turnover threshold or if it looks likely that you will exceed it. Once you've passed the turnover threshold, you must register within 21 days

2) Claiming GST without realising that your supplier is not registered for GST
Your supplier must be registered for GST before you can claim a GST credit on a purchase.

3) Claiming GST credits for full amount of purchase when goods are used partially for private purposes
You are allowed a partial GST credit for the GST you pay in the price of things you use partly for business purposes and partly for private purposes such as a motor vehicle. The amount of the GST credit you are entitled will depend on how much you use the purchase for business purposes.
In addition, if you account on a cash basis and have not paid for the purchase in full, you can only claim a credit for the GST included in the amount you have paid.

4) Short-changing yourself by not claiming valid GST tax deductions
Business owners often pay for expenses out of pocket or with their own personal credit card then make the mistakes of failing to track these expenses. They may then fail to submit the expenses to the company for reimbursement or lose tax invoices.
A qualified bookkeeper or accountant will be able to track all expenses, keep up to date with all current tax legislation and be able to advise you what GST you can claim so you can receive the maximum rebate from the government come tax time.

5) Not keeping accurate GST records
The stereotype of a small business owner keeping their invoices in a shoebox unfortunately still rings true for a lot of small business owners. By employing a bookkeeper, using commercially available software used for bookkeeping records and keeping GST records up to date, you will be able to monitor your GST and simply your Business Activity Statement (BAS).GST is claimed when you lodge your BAS and the exact period you claim it will depend on whether you account for GST on a cash or accruals basis and your annual turnover.
By monitoring your GST and keeping accurate records, you will be ready to lodge your GST claim on time and reduce any tax liabilities.
There are many advantages to having a bookkeeping service and just one of these is to make your GST less taxing and make it easier for you to record all your GST transitions and claim for all legitimate GST deductions.
By leaving it to the experts, you can ensure your GST is done correctly and on time.