The Future is Now ! : Online
For businesses with a significant volume of transactions, it makes sense to
consider using an applications service provider to host the accounting operation
so that there is only one current data file. This enables access by authorised
persons including the external Accountant and Tax Agent.
You may visit easeaccounting.com.au
for explanation of this type of service.
Please contact our office to discuss this cost effective way of
efficiently maintaining your accounting records subject to consideration of
security issues including periodic backups (via CD or email) off-line for
to use MYOB software to emulate the Business Activity Statement correctly :
Each and every transaction
must be coded with an Account code also; from 1 July 2000; a GST code
(regardless of the date of supply or acquisition).
Account Codes :
the Schedule below are a list of common account labels.
The classifications are a rough guide, geared towards
clients with MYOB Accounting Plus, but should be helpful for clients with First
Accounts. (If you have First Accounts You will not have all the codes) Other
programs will probably have similar GST coding options.
GST Codes :
Default GST Codes have
been provided but this does not substitute for professional advice ! You should check with this Firm if
in doubt as to the correct GST or income tax treatment.
Pro-rate GST Credits where Part Private
Where expenses are required to be apportioned
for income tax purposes (eg telephone or mobile) generally only the same
proportion of business usage may be claimed for GST input credits.
If using MYOB you will
need to establish control accounts for GST collected and Paid if you have not
already done so. You may visit MYOB for support
advice and ensure your software is GST compliant!
Please do not assume deductibility
or availability of GST credits without advice
and where appropriate, ensure substantiation or documentation. GST credits must
not be claimed in a BAS unless Tax Invoices are held at the appropriate time. The labels are a start to understanding your
accounting system and its role in data capture for income tax and GST compliance. Sub-accounts may
be appropriate for most information systems.
Responsibility will not be accepted for
using these codes without appropriate professional advice as in some instances input
credits will not be available - eg due to the rules on input taxed supplies, not being
registered for GST or not having appropriate tax invoices to support input tax credits or
where 48.5 % withholding is required due to the supplier not having an ABN.
Most Common GST Tax Codes : NOTE: If the (PAYER) Entity is
do NOT use this Table.
GST = Taxable
GNR = GST Not
registered code. Ie An ABN held but no GST collected.
GN2 or NOA = Voluntary
withholdings 48.5 % - if no ABN held
by a payee.
GCA = Taxable
NT = Not
INP = Input Taxed
ITS = Input Taxed Sales - eg Residential rents or interest
Free - Free of GST
Non-tax deductible - no
QUE = not
sure of GST - raise query with ITax Solutions -by email?
could be ITS (eg Residential rent or interest income)
re INP expenses
||Employee reimbursements re say car fringe benefits by 31 March A GST liability arises
even if journalised.
brochures & other media
Transaction fees but care as some bank service fees (eg
merchant fees) include GST -check your
|Bank -Merchant fees
||credit card merchant
for bookkeeper if external
||monies paid for
document exchange & couriers
GNR or QUE Care to ensure a TAx Invoice has been received !
||commissions for work
here ! Is an asset account label appropriate ?
This item may cover :
- Computer consumables -floppies, CDs labels -or label as stationery
- Software updates -but only if minor low cost seek advice here -40 %
depreciation may apply - if so code as computer software fixed
||Normally handled by Accountant - do not code any
payments here -see Asset coding
||electricity used for
|Care here as
food may be FRE
|NB May not be
deductible unless FBT applies
portion allowable re staff functions but not light lunches on premises
-see staff amenities- This area is complicated. Seek professional advice !
||Lodgement fee for
Government for Company documents eg. business names and Annual Return.
||fines relating to
late payment for group tax or parking fines.
Fringe Benefits Tax
paid to Deputy Commissioner of Taxation
fringe benefits - use for quarterly instalments & final payment
- sickness &
- public liability
- workers compensation
||either interest paid
on overdraft per bank statements Car re interest income is a separate code see below
QUE care - do you have a Tax Invoice or are payments N-T ?
||leasing expenses for
- may be
subject to GST but check documentation
Motor Vehicle Expenses
insurance "green slip" now
free For help see :
- maintenance and repairs- lease expenses - may be subject to GST but
||all monies paid for stamps,
|Printing & Stationery
||all monies paid for printing and
stationery, business cards etc.
|Repairs & Maintenance
||repair of faulty equipment, eg.
fixing switch on fax machine, mending broken chair, not purchasing new item
|Rent - office
||GST if Landlord registered for
GST - care here ! code may be INP or NT if Landlord not registered for GST or 48.5 %
withholding if no ABN !
||all monies paid for leasing
premises, rates & outgoing
| Staff Amenities
|| Milk, coffee, sugar,
||GST or FRE depending upon tax
- Light lunches on premises
- Toiletries (soap, tissues
Note Tax invoices not required if less than $ 55 GST
Re Difference between Entertainment and Staff Amenities ! Call for
||- out of pocket expenses
||- Trade Associations
- Professional, Business or Trade Journals
- Loose-leaf technical
||-Compulsory and optional
||GST if subcontractor registered
for GST - Care here ! Code may be "GNR" if subee" has ABN but not registered for
GST or 48.5 % withholding if subcontractor has no ABN !
||Gross up for any
GST -but watch
apportionment of Input tax credits for part busines items if sole trader enterprise.
||- Local, taxis & fares
||- Interstate conferences
||FRE Care here
||- Overseas travel
Care here as
special rules apply for deductions for uniforms. Protective clothing is treated
differently. Concessions may apply to laundry.
||- employee wages - gross
inclusive of PAYE tax.
Computer Software licences
||New items of equipment or
furniture purchased for office -see Notes on Depreciation
above re computer expenses.