It might seem like it’s facile to conduct business, but in reality, it’s not, especially with the cut-throat competition from entrepreneurs. It’s a self-staking venture replete with sweat, perseverance, and what has probably amounted to numerous nights of tossing and turning worrying about the future.
When as an entrepreneur, you invest a lot of effort and time in making your business grow. Now, the last thing you would wish to be caught off guard by some common mistakes especially so in areas that involve GST lodgements.
Also Read: Business Accounting Types & Benefits
Common GST Mistakes To Be Avoided By Business Owners
Errors made while reporting GST on Sales and Purchases
Some of the common mistakes that are observed in the GST returns are related to reporting of GST on sales and purchases. This can happen whether it is because of wrong figures being put or there’s confusion on what should be written as taxable sales. Every single transaction needs to be accounted for properly and the GST computation should also be done correctly.
Not able to overcome these errors? You should think about using expert bookkeeping services to stay away from these mistakes.
Ensuring that every transaction is precisely recorded and that GST is applied correctly can be facilitated by a skilled bookkeeper.
Maintaining thorough and well-organized records will help you reduce the possibility of mistakes and save money on fines.
2. Overlooking GST Registration Thresholds
A large number of companies continue to trade with no knowledge that they have breached the GST registration threshold. GST registration is compulsory if your business has an annual turnover of more than $75,000 from obtaining supplies of goods and services.
Omission of doing so leads to high risk of penalties and interests on the debt. An efficient business accountant can watch over your turnover and let you know when you need to register to make sure that you’re compliant without having to pay heavy fines.
3. Incorrectly Claiming GST Credits
The issue of goods and services tax credits on purchases is considered one of the most crucial parts of business accounting. However, common errors are found in the credits taken on the expenses which are actually not allowed. For example, spending on personal needs or assets partly for business and partly for personal use may not be allowed.
To prevent this from being an issue for your business, be very careful about claiming GST credits on any business expense, and always speak with an expert professional accountant from Loyalty Accounting Solutions.
4. Late GST Reporting
Failing to submit GST information before the due date can lead to significant penalties, and it might also cause problems with the cash flow position of a business. The importance of timely GST lodgements is unavoidable.
To avoid late lodgements, it’s essential to stay organized and keep track of all GST due dates. Hence, you could think about using professional bookkeeping services in Melbourne as a way to meet your GST lodgement deadlines and satisfy your GST requirements without causing you any unwanted worry.
Looking For Trusted Business Accountants To Manage GST Complications? Call Us NOW!
There are several GST mistakes small business owners can make that might negatively impact their business. When you engage in business accounting and bookkeeping services in Melbourne, you will have the time, and you will be able to enjoy the peace of mind that your GST obligations are being accurately met and on time. With these tasks off your ‘to-do list,’ you can concentrate on the things you are good at and have the time to grow your business.
Our qualified BAS agents and seasoned CPA accountants have over eighteen years of senior finance experience, and we offer thorough, prompt, and compassionate financial management. We ensure ATO compliance while helping Melbourne businesses manage their GST lodgements, payroll, taxes, and finances effectively. For a free one-hour consultation, call us now!
FAQs Of GST Management
Documentation is important when it comes to GST since the records enable one to make adequate GST claims and lodgements. Records should be kept for a minimum of five years since the ATO (Australian Taxation Office) demands good record-keeping to avoid being audited.
Indeed, hiring professional bookkeeping services in Melbourne can go a long way in assisting you avoid some of these common GST blunders. A proficient bookkeeper will guarantee your accounts are complete, audited on time, and your GST credit correctly claimed. Therefore, this makes your work easy by eliminating all types of mistakes and at the same time, ensures that you are meeting all the set regulations of ATO.
In case you find out that you made a wrong GST calculation, it is recommended that you fix this error immediately. The errors can be corrected by the ATO’s online self-service portal or by involving a business accountant in Melbourne. Proactive measures can thus help ensure that penalties and interest are either eliminated or reduced.
Disclaimer- The information provided in this content is just for educational purposes and is written by a professional writer. Consult the professionals today to know more about GST.
