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happygirl, post: 122751 wrote:
Hi Everyone :-)

I am not an accountant – but really seeking someone who can is :confused:

I understand that businesses have the option of electing how they report their revenue (i.e. Cash or Accrual) with the larger corporations electing to go the accrual method. i.e. when invoices are issued it is recorded as revenue, rather than when they are paid. This election however is a matter of choice and not legislation.

I am confused as to how it works with GST (Cash or Accrual). I was of the understanding that a lot of people elect Cash, however as soon as you earn of $2 million in turnover you have to elect the Accrual method.

Where am I going wrong, as my understanding in another post (Invoices) seems to indicate you can elect either option.:confused:
Correct for gst you must report via accruals once over that amount.

Good job – I am going to do a bookkeeping course !!

Thanks all – this is going to stay in my mind till answered by one of you accounting guru’s. Correct you must report by accruals once above that amount.