Cash or accruals: when does Kontuly report GST?
Your accounting basis decides when GST counts on your BAS in Kontuly. On the Accruals basis it counts in the period of the invoice, bill or bank transaction date; on the Cash basis it counts when the money changes hands, in proportion to what's been paid.
For example, if you invoice in September and the customer pays in October, the GST is on your September-quarter BAS on accruals, and on your December-quarter BAS on cash.
How does the cash basis treat each kind of transaction?
- Invoices and bills: GST is reported in proportion to each payment, on the payment date. If a customer pays half an invoice, half its GST is reported.
- Bank lines you code in Banking: reported on the bank date; they're cash by nature.
- Credit notes applied to an invoice or bill: not cash, so not counted on their own. The invoice's GST follows the cash actually received for it.
- Cash refunds of credit notes: reverse their GST on the refund date.
- Unassigning a bank line removes it from the cash figures.
How do I set my basis?
Open Settings, find GST & returns and choose the Accounting basis: Cash or Accruals. Click Save changes.
Which basis you can use is set by the ATO; small businesses can usually choose. Ask your accountant or registered BAS agent if you're unsure.
Can I change it later?
Only if your registration with the ATO has actually changed, and talk to your accountant first. The GST Report is always worked out from your transactions using the settings as they are now, so changing the basis changes the figures shown for past periods too. Keep a PDF of each lodged period's report.
Can I see the other basis without changing my setting?
Yes. The Basis control on the GST Report changes that report only, not your settings.
Does the basis change my Profit and Loss?
No. The Profit and Loss is always on the accruals basis.
Related questions
- How do I prepare my BAS figures in Kontuly?Kontuly's GST Report prepares the G1, 1A and 1B labels of your BAS, plus PAYG labels if you set them up. Here's how to run it for your BAS period.
- Why doesn't my GST Report match what I expected in Kontuly?Kontuly GST Report figures off? Check the basis, the period, drafts and unassigned bank lines, tax codes, what's deliberately left out and GST registration.
- How does Kontuly work out GST on a bank transaction?Kontuly treats bank amounts as including GST and splits the tax out at the account's rate, or a rate you choose, when you code the line.
More about gst, bas and tax
- How does Kontuly work out PAYG withholding W1 and W2?Kontuly has no payroll, but reads BAS labels W1 and W2 from your wages and PAYG withholding accounts. How to set them up and record each pay run.
- How do I add PAYG instalments to my BAS in Kontuly?Set PAYG income tax instalments in Kontuly's BAS PAYG settings as your ATO notice amount (T7) or rate (T2), and the GST Report adds 5A, 8A and 9.
- How do I prepare a TPAR (taxable payments report) in Kontuly?Flag contractors on their contact and Kontuly's Taxable Payments Annual Report totals what you paid each one, with GST, for your TPAR. You lodge it.
- What GST codes does Kontuly use, and can I add my own?Kontuly starts with GST 10%, GST Free, Input Taxed and No GST. What each means on your BAS, how account defaults work, and how to add a rate.
- How do I record paying the ATO for my BAS in Kontuly?Code the ATO payment or refund bank line to your GST account in Kontuly, splitting out PAYG withheld and instalments. It won't appear on your next BAS.