Small Business Accounting 101: Registering for GST
Even if you're running a small business, you'll have to deal with heavy financial responsibilities to help keep your company running. Besides ensuring you're making a profit, have enough for suppliers, and budget for campaigns, you also need to ensure that you're financially capable of dealing with taxes.
One of the most critical tax-related responsibilities is registering for goods and services tax (GST). Fortunately, thanks to technological advancements, you can now register for GST online or on your phone. Besides that, you can even go through the traditional route and register with a BAS agent and small business accountant.
Thankfully, you only need to register for GST once. This is great news for business owners who run a few more businesses, allowing you to tick off collective business financial responsibilities.
If you're thinking of registering for GST and you're unsure of what to do, read on. This article is our beginners guide for GST registration for small business owners like you. Let's get to it!
When Do You Register for GST?
If your business isn't registered for GST, you need to check every month to see if you've reached the limit or exceeded it. Ideally, you need to register within 21 days of your GST turnover when it exceeds the relevant threshold.
Here's a quick run-through of when you need to register for GST:
When your business has a GST turnover of $75,000 or more;
When you start a new business and expect that your GST will reach the threshold in its first year of operations;
If you've reached your GST threshold in your business;
If your non-profit organisation reaches a $150,00 GST turnover per year;
If you provide transportation services, including ride-sourcing;
If you want to claim fuel tax credits for your company;
How Do I Register for GST?
Before registering for GST, you need to ensure that you have an Australian business number (ABN) to register your business under your name.
Once you have your ABN, you can register via online services by phone or with the help of a BAS agent or small business accountant. After completing the NAT 2954 form or "Add a New Business Account" form, you'll get notified regarding your registration details, when it will be effective, and your other ABN details.
What Happens If I Don't Register for GST?
There are some penalties, interest, and complications that you may need to deal with when you don't register for GST, like any form of tax. If you don't register for GST, you may need to pay GST on sales since the day you were required to register.
What is the GST Turnover Threshold?
To know if you have reached the GST threshold, you must experience the following:
Your current GST turnover for the current and previous 11 months totals $75,000 or more;
Your projected GST turnover for the current month and next 11 months is $75,000 or more.
Speaking to a small business accountant can make things easier for you when it comes to GST predictions, allowing you to be ready for registration when needed.
The Bottom Line: Get a Small Business Accountant to Help You With GST Registration
Although you can easily register for GST online, there are waves of things you need to consider before and after your GST registration. For this reason, hiring a credible small business accountant to guide you through the whole process is key to ensure that everything is in place for your business and GST needs.
How Can New Wave Accounting Help You?
If you're looking for a small business accountant in the Gold Coast, consider working with New Wave Accounting.
We provide end-to-end accounting and bookkeeping services that will help develop small businesses in any industry. With the help of our expert accountants, we can provide you with tailored solutions that will help you build a stronger financial future for your business.
Learn more about how we can help you today!