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  • #988117
    HarryDanger
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    Hi there and greetings,

    I recently setup a new business selling non electrical IT products which I import from Europe. This is a side project which started from a hobby while maintaining my full time day job. Things are really slow and in fact sell only 2 units per month while I establish my website and marketing.

    In order to get going quickly I obtained my ABN and started selling, drop shipping products direct from Europe to my clients making a very slim profit as most was consumed by the shipping costs.

    I am curious where to start to calculate the amount of GST I should pay and how I complete my tax return. I basically have a pot of money which i have accumulated with my sales.

    Whats next?

    Harry

    #1165718
    Anonymous
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    Hi Harry,

    Welcome to Flying Solo.

    I have my fingers crossed that one of our resident experts will be along shortly to give you some general guidance, but suspect that you’ll need to talk to an accountant to determine the best way to proceed for your particular circumstances.

    Good luck for your new venture,
    Jayne

    #1165719
    FalzonFinancial
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    Hi Harry,

    Providing you are registered for GST, I would recommend implementing accounting software to assist you in reporting your GST obligations to the ATO in a timely manner to avoid penalties and GIC.

    You should report GST in accordance with your registration period.

    Further, it would be highly recommended engaging an accountant to prepare your tax return to maximise your entitlements. We have partnerships with various accountants and can provide a referral if you are interested.

    Feel free to send me an email below for further assistance.

    #1165720
    HarryDanger
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    Thanks for the replies.

    I am not yet registered for GST as I thought it was not mandatory straight away. Which software would I need in order to calculate the GST? Equally happy to speak with an accountant to arrange this on my behalf

    #1165721
    Luth6322
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    HarryDanger, post: 191948 wrote:
    Thanks for the replies.

    I am not yet registered for GST as I thought it was not mandatory straight away. Which software would I need in order to calculate the GST? Equally happy to speak with an accountant to arrange this on my behalf

    You are correct, GST registration is only required if you expect your turnover to be over $75,000.

    What are you trying to achieve? If your just trying to get an idea if it’s worth registering for GST before you have actually reached the required turnover, then I would suggest doing a quick calculation based on your current or expected income and expenditure. Either a bookkeeper or Accountant with a reasonable amount of GST knowledge could help you with this.

    If the plan is to register for GST voluntarily and then start calculating GST then there are many financial systems that can calculate GST for you and also assist in preparing your Business Activity Statement. As you seem to be keen in working with an accountant online etc. I would suggest a system that uses Cloud technology, something like Xero or Saaus. Both are linked below and there are quite a few accountants that can help you set these up if you require further guidance.

    http://saasu.com/
    http://www.xero.com/au/

    The reason why I ask the question is that if you tell most financial systems that you are registered for GST, then it will account for the GST differently then if you were not registered for GST. So if you decided afterwards that you don’t want to register for GST the information in the financial system might not be accurate for end of year tax purposes.

    Hope I haven’t confused you to much?

    Cheers

    Carrie

    #1165722
    bb1
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    Luth6322, post: 191966 wrote:
    As you seem to be keen in working with an accountant online etc. I would suggest a system that uses Cloud technology, something like Xero or Saaus.

    Harry, Just be very very very careful if you decide to use Cloud technology system, there are still a number of issues in regards to security in ralation to data over the internet, recent issues with major corporations shows that all our data online is vulnerable.

    It is not necesary to have Cloud technology for your accounting software. It is easy to get your data to the accountant without Cloud technology. As an ex IT person there is no way I would put my data online at this stage.

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