[GNC] Help needed in Australia

[David Cousens]

Weiwu,

Whether you use cash accounting or accrual counting is a choice depending on the
aggregated turnover of your company (business turnover + that of any associated
entities). Usually if it < AUD$ 10,000,000 you can choose which you use. Over
that threshold you must use accrual accounting 
(
https://www.ato.gov.au/business/income-and-deductions-for-business/assessable-income/accounting-methods/
)
This choice also affects your BAS and GST accounting(
https://www.ato.gov.au/business/gst/accounting-for-gst-in-your-business/choosing-an-accounting-method/
). The optimal choice may be also dependent upon the nature of your business.

For this it is really advisable to consult an accountant to properly structure
and setup your accounts and ensure your accounts will meet all necessary
reporting requirements. 

Any advice you receive here is about how to use the program not how to account
for your business

David Cousens
 

On Thu, 2021-07-29 at 13:18 +1000, Weiwu Zhang wrote:
> On Wed, 28 Jul 2021 at 21:34, flywire <flywire0 at gmail.com> wrote:
> > GST is automated for accrual accounting but not for cash accounting.
> 
> Thanks! The devil is in the details so may I confirm this with you:
> 
> - We record expenses at the moment of payment since most are purchased
> online, invoiced, and paid at the same time.
> 
> - But regarding income, we always invoice customers first, and record
> receivable when doing the invoicing. I know how to make an invoice
> with GnuCash and how to do a transaction between the receivable asset
> and current asset later.
> 
> Does this make my company accrual accounting or cash accounting? Is
> the GST handling still an issue for us in this case?
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