041 | GST - Next Step: Record Transactions
Updated: Nov 10, 2021
In our post last week, we provided the information to setup your new GST number in your cloud accounting platform. We prefer #Quickbooks of course!
Now in Step 3, record your transactions (sales and expenses) with #GST.
When creating a sales invoice to customers, ensure your tax feature is turned on and the field is available for you to select. You know your business best, so choose GST for all applicable product or service sales.
When entering an expense, ensure that you have applied GST (for those of us in British Columbia at the correct rate - 5%) so that you can include the Input Tax Credit in your returns, which we will cover in our next step on ITC's.
This step is simple - rinse and repeat - but the most crucial and often the most overlooked. Hundreds of dollars are missed each reporting period in ITC's that you could collect, merely because transactions are not recorded properly.
And as always, we are here to help! Contact us with your questions.