Much thanks David for the explanation! I have already got 3 accountant offer on setting up the whole thing including their choice of software; but I'd wait a few days to see if anyone would offer to also set up with GNUCASH. If no I'll just go with one of them.
On Thu, 29 Jul 2021 at 15:21, David Cousens <davidcousen...@gmail.com> wrote: > > Weiwu, > > Whether you use cash accounting or accrual counting is a choice depending on > the > aggregated turnover of your company (business turnover + that of any > associated > entities). Usually if it < AUD$ 10,000,000 you can choose which you use. Over > that threshold you must use accrual accounting > ( > https://www.ato.gov.au/business/income-and-deductions-for-business/assessable-income/accounting-methods/ > ) > This choice also affects your BAS and GST accounting( > https://www.ato.gov.au/business/gst/accounting-for-gst-in-your-business/choosing-an-accounting-method/ > ). The optimal choice may be also dependent upon the nature of your business. > > For this it is really advisable to consult an accountant to properly structure > and setup your accounts and ensure your accounts will meet all necessary > reporting requirements. > > Any advice you receive here is about how to use the program not how to account > for your business > > David Cousens > > > On Thu, 2021-07-29 at 13:18 +1000, Weiwu Zhang wrote: > > On Wed, 28 Jul 2021 at 21:34, flywire <flywi...@gmail.com> wrote: > > > GST is automated for accrual accounting but not for cash accounting. > > > > Thanks! The devil is in the details so may I confirm this with you: > > > > - We record expenses at the moment of payment since most are purchased > > online, invoiced, and paid at the same time. > > > > - But regarding income, we always invoice customers first, and record > > receivable when doing the invoicing. I know how to make an invoice > > with GnuCash and how to do a transaction between the receivable asset > > and current asset later. > > > > Does this make my company accrual accounting or cash accounting? Is > > the GST handling still an issue for us in this case? > > _______________________________________________ > > gnucash-user mailing list > > gnucash-user@gnucash.org > > To update your subscription preferences or to unsubscribe: > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > If you are using Nabble or Gmane, please see > > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > > ----- > > Please remember to CC this list on all your replies. > > You can do this by using Reply-To-List or Reply-All. > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
