Like DIY but ensure RIA (Review it also)
“You don’t know, what you don’t know” famous words by someone.
If you do know a little, then are unsure then ASK, please.
Today’s technology and simply being able to do everything online has meant people tend to believe advice is expensive, online is fast and DIY is best for business.
Teaching clients with accounting software as an employee I was often working after the fact when clients were required to file returns and sometimes when the accounts were in a mess and Inland Revenue were on their tails.
An area I often hear from the public is that GST(Goods & Services Tax) is easy, maybe it is for you now after learning how to complete correctly either manually or with software. For many there are traps as they do not understand GST or how it should be to pick up any issues when reviewing.
Here are a few examples of those who thought it was easy and why it wasn’t even for them.
Another code had been set up for drawings with GST being deducted so at the end of the year they had over claimed $30 000 in GST
A client of whom had been doing it for years started their new Xero system. We took over as their accountant and I found they had been filing with the GST late claims button on. Two returns of over payments totalling $40 000 thankfully it was overpaid not under!
An office worker being told to make an adjustment for prior years errors with a $29 million turnover and then actually, doubling the problem.
So, it is GST filing time on the 28th August
Match all of your transactions for the GST period
Understand what GST filing basis your business is registered as ‘payments or invoice’
Complete the Bank Reconciliation
Prepare a manual journal for cash or credit card expenses (currently in Xero Expenses is free until 21st October and each receipt goes in to win)
Print off the GST return and check each entry should either have GST for expenses (inputs) Sales (outputs) and items like bank charges, interest GST exempt.
Do a logic check of what sales you have been paid for in the month and if any large expenses like a vehicle are included showing GST deducted.
GST late claims (turn off the function)
But really get the right advice at the beginning and have what you prepared reviewed.
Start at the beginning how you mean to continue and do use the IRD - GST guide 375
Easy as then. If this is you then contact us at CW Chartered Accountants Ltd and we can review your software to make it right first time.