Configuring the GST:
The Agrimaster Cash Book aids you in processing and recording your financial records, generating a Business Activity Statement at the end of your nominated tax period showing all records required by the ATO.
Before continuing you will need to ask your Accountant the following questions:
- Are you on a Quarterly or Monthly return period for GST, PAYG, Wages Tax Deducted, Withholding Tax?
- Are you on a Cash or Accrual Basis calculation basis for GST reporting?
Each of your existing codes will be assigned a GST category. This is how Agrimaster determines if the code is subject to GST or is GST Free. The GST categories used in Agrimaster are not the official ones used by the Tax Department but they do correspond.
All Default GST Categories assigned to codes can be overridden in the transaction entry window if needed.
Step One - GST Setup
- Start at the Home Page
- Click Setup & Tools
- Click Cash Book Setup
- Click Tax
- Click Setup GST to display the window below
- Enter your Business Name
- Enter your ABN (E.g. 11 222 333 444)
- Select with your mouse the GST Return Basis (i.e. Cash or Accrual)
- Select the GST Return Period by clicking on the drop down list
- Click in the Activation box for Cash Book to activate the GST
- Click to proceed to the next Setup setup
The official start date will already be entered for you. It will be the file start date unless you are starting your file prior to July 2000.
You may report for GST purposes either on a 'cash basis'or an áccrual basis (invoice basis).' A business that uses cash accounting for income tax purposes, OR has a turnover of less than $2 million can use the ‘cash’ basis that requires less data entry. Advice should be sought from your accountant on which method to use.
Step Two - GST Rates & Categories
No changes should be made to the defaults on this window. The unfilled sections are for future use if and/or when tax rates change or additional categories are added to those currently planned.
Read the notes included on the screen then click to proceed to the next setup window.
Step Three - GST Code Setup
Understanding the GST Codes:
The following codes will be automatically added to your code list. The definitions are outlined below:
- GST Collected is the code used when you collect the GST on income earned. The official term as referred to by the Tax Department is Output Tax. This code is used only by Agrimaster.
- GST Paid is the code used when you pay GST on goods bought. The official term as referred to by the Tax Department is Input Tax. This code is used only by Agrimaster.
- GST Refunded refers to GST you receive back from the ATO. This occurs when you have paid out more GST than you received.
- GST Remitted refers to GST you paid to the ATO. This occurs when you received more GST than you paid out.
Click NEXT to proceed to the next setup Step.
Agrimaster will not allow you to use the codes ‘GST Paid’ and ‘GST Collected’. These two codes are for Agrimaster/Tax compliance use only.
Step Four - Allocate GST Categories to Codes
Each code used in Agrimaster must be assigned a GST category. It can either be done here in the GST Setup process or in the Code Setup area.
When this window is accessed for the first time Agrimaster will make a “Best Guess” as to which category a code belongs. It is up to you to check the GST codes are in the correct category. Consult with your Accountant, or even send an email to firstname.lastname@example.org and if necessary, add extra codes if a current code is used for a variety of items that may be spread over several GST categories.
For example the code initially set up as INSURANCE will become two codes:
|New Code||GST Category|
|Personal Insurance||No Claim|
As there is no room for ambiguity with the GST, it is a good idea to rename existing codes like Sundry to something such as “Sundry Repairs” and then move them to the appropriate category.
- In the relevant GST category list, click to select the on the Code to be moved
- Click the HEADING of the list into which the code is to be placed, e.g. Capital
- Now repeat the above steps for all codes that are in the wrong GST categories
- When all codes are in the correct GST categories, click to proceed to the next step
Step Five - GST Proportional Codes
There are some codes that are used for both Business and Personal expenses. Some examples are: telephone, electricity and fuel. The GST portion of a business expense can usually be claimed back, the GST on the personal proportion cannot be claimed back and will need to be shown on the GST return as an adjustment.
Likewise, any business use of “No Claim” codes can be claimed. This window lists all the payment codes and allows you to enter a percentage of personal use where appropriate.
- Using the scroll bar in this screen, select the codes with a Standard or Capital category that require a % Use Private. Click in the white box and type the percentage of private or business use
- Using the scroll bar in this screen, select the codes with a No Claim category that require a % Use Business. Click in the white box and type the number
- When complete, click or the icon to exist the GST setup.
Do not enter a private percentage for Diesel or Petrol here as it is covered in the Fuel Ta Rebate Window. The percentage rates may be altered at any time. The percentages used will be those in force when the GST return period is printed.