Depending on whether you use Bank Feeds or Spend Money.
Either way, the Transaction will have 2 lines.
1 line for the Business Component and 1 line for the Personal Component.
Personal Component has GST code of N-T.
Duncan
Hi Duncan
so in spend money I need to break every transaction down.
for example petrol use I would manually calculate the percentage of it and then do 2 lines
Thanks for your help
Accounting for Petrol is more complex.
The ATO allows an annual personal apportionment of Car Expenses.
Work with your Tax Accountant on this.
Your Business Structure determines how this may occur.
A Company can claim 100% then make a Directors Contribution to a Income Account.
Once again, work with your Tax Accountant on this.
Duncan
I have been running the business for many years and it's simply the change in accounting software and GST registration.
most items entered in spend money sre 100% business
for petrol its a lower percentage. Usually I'd record this on a speadaheet however I know it's going to impact my BAS
for the purposes of this I assume I use the motor vehicle expenses and personal contributions wtih no tax code for the moment
Chris,
I gather you are a Sole Trader who has recently registered for GST.
The private % of a car is based on the Log Book.
A Tradesperson will normally have a lower private % than a Business Owner who works in an office.
The Motor Vehicle Expenses have a GST Code and Personal Drawings have a N-T code.
Note Registration does not have GST and MV Insurance may be part no GST (as per Tax Invoice).
Duncan
