What is the accounts method?
To use this method you must have record keeping and accounting systems that separately record GST amounts for your sales and purchases and incorporate proper audit trails. This may be as simple as having a GST column in your cashbook or spreadsheet. Your records also need to separate any purchases that were for private use or for making input taxed sales and correctly bring GST adjustments to account. Your total sales records can be kept including or excluding GST. Make sure that the amounts you write at labels 1A and 1B in the summary of your activity statement are accurately calculated from your records and that you mark the appropriate box on you activity statement outlining whether amounts you have provided on the activity statement include GST or are GST-exclusive. For further information, refer to section 03 – Choose a method to complete your activity statement at Goods and services tax – how to complete your activity statement (NAT 7392).
