Chapter 5. Working with GST
Your accountant will establish a chart of accounts that includes the correct GST codes for each account. The data disk supplied by your accountant will include this chart of accounts.
Tip: To print a copy of your chart of accounts - from the Reports menu, click Chart of
Accounts.
Understanding tax codes
HandiBiz 2015 uses a number of different tax codes to facilitate GST collection and the preparation of your Business Activity Statement.
Tip: To print a copy of the tax codes – from the View menu, click Tax Codes and then
Report.
When you enter transactions, HandiBiz 2015 will complete the Tax column for you based on the tax code associated with the account in the Chart of Accounts.
Example:
If you were to record a cash payment to an account (for example account 2815) with the CAP
(Capital acquisitions) Tax Code, HandiBiz 2015 would automatically complete the Tax Code column with "CAP", and would use a rate of 10% when calculating the tax.
Later, when you prepare your Business Activity Statement, HandiBiz 2015 will place transactions with a Tax Code of CAP into Item G10 on the Business Activity Statement report.
How tax codes work
Example:
A HandiBiz 2015 client, who is a sole trader, sometimes pays for personal items out of the business account and the accountant has specified that all entries must specify a tax code.
Personal items (as opposed to something that is part usage business and part personal which has to go to a private usage tax code) should be posted to the Drawings account 4080.
In this exercise, you will create a new tax code for drawings, which will calculate an amount of tax in the tax column. This tax amount will be written back to the drawings account and will not print on the BAS statement.
For this example, you would set up your tax code (DRW), using the tax calculation method as normal, GST at ten percent and the posting account for tax as being drawings. You will not specify a BAS code or select Capital Acquisition, as you do not want this to appear on the BAS statement.
An entry for $110.00 was posted including $10.00 GST through the HandiBiz 2015 "Bill
Details" (Creditors / Bills Received / New) window. The line entry is posted as tax inclusive and therefore the line details specify an including tax amount of $110.00, tax code of DRW and
$10.00 for the tax.
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Chapter 5. Working with GST HandiBiz 2015
Figure 12: Example of Bill Data entry
Therefore, the Ledger entry would be:
Dr/Cr Account Description
Dr 4080 Drawings
Dr 4080
The amount in the tax column on the transaction line (Drawings)
Cr 3048 Trade Creditors
Amount
$100.00
$10.00
$110.00
Adding a new Tax Code
1. From the Tools menu, point to Debtors / Creditors and then click Master Tax Codes to open the “Master Tax Codes” window.
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Figure 13: The "Master Tax Codes" window
2. Click New to open the “Add a Tax Code" window.
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