Tip No. 4: Be aware of your GST liability
Proper records need to be kept of GST collected and GST credits that are claimed as part of the BAS reporting process. Unless some cash reserve is provided for it is easy for the GST component of a businesses sales to be used for other payments.
There are also some traps such as the need to charge GST on the sale of assets and to make sure that suppliers who you have claimed a GST credit for are actually registered for the GST. This can easily be checked by going to the web site www.abr.gov.au. Unless you are registered for a cash BAS you may be required to pay GST on the total invoiced price of a job even though it may not be paid for some months ahead.
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