Home Forums Money matters GST and calculating break even

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  • #1000250
    CandyKid
    Member
    • Total posts: 2

    Hi all

    I’m wondering if you can help me with a quick question.

    When calculating expenses for a business to work out a potential break even point should I be including GST or excluding GST in these calculations? i.e. When adding the cost of the lease and the cost of insurance etc. Should I take off the GST component in my calculations? The business would be registered for GST and would therefore be able to claim these expenses back.

    What is the appropriate way to work this out?

    Thanks

    #1223564
    Paul – FS Concierge
    Moderator
    • Total posts: 3,121

    Hi and welcome to Flying Solo [USER=118178]@CandyKid[/USER] .

    I cannot give you the correct way to think, but I can tell you how I think about GST.

    For the most part, I think in Net terms ie, the price less GST.

    This goes for both my prices and the prices I pay for things.

    It simplifies things in my mind. A lot.

    Cheers

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