Don’t be scared of GST
EPISODE 83
Notes
I’ve been hearing some strange comments of late from business owners around GST, so I thought I’d clear up a few things on this important topic. In an earlier episode on the podcast, I gave a general overview of GST registration and how it works. Today, I’m going a little more niche and talking about why you shouldn’t be scared of it as a business owner.
Understanding GST and its implications for business owners is crucial in ensuring compliance, as well as giving you the confidence to expand your business and keep moving it forward. While many business owners are under the misconception that they’re being robbed of that extra 10% come BAS time, I discuss how collecting GST on behalf of the government actually works, and why avoiding registration might not be the best strategy.
When it comes to small businesses making the flip to becoming GST registered, I often see business owners fearing that their customers will not be willing to pay the extra 10% cost for their services. However, there are ways to change your mindset around charging more from one of fear, to one of abundance. I talk about ways you can add value to your service to keep your customers coming back, and encourage you to think big when it comes to the longevity of your business.
I take you through some GST housekeeping and share general advice around:
The annual turnover that requires GST registration;
Different avenues available for registering for GST;
Issuing tax invoices with GST included in order to report correctly come BAS time;
Seeking training or guidance when preparing your first BAS to avoid mistakes.
I talk about how avoiding GST registration may mean you encounter some issues that may be a bit curly to unwind down the track, or that you miss out on claiming GST refunds on your expenses altogether. Don't let short-sighted tax avoidance strategies dictate your business decisions. Instead, focus on growth and understanding how GST can work for you.
LINKS:
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About the
Author
Bec is a chartered accountant who worked at Australia’s big firms and banks for 15-years. Faced at a crossroads in her career, she backed herself, left her corporate job and launched Straight Up Bookkeeping. 3 years and 5 staff later, Straight Up Bookkeeping is one of Australia’s leading virtual bookkeeping businesses for creatives, with a mission to free business owners from financial stress so they can grow their empires.
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