Avoid penalties for incorrectly charged GST
When it comes to small business, simple mistakes in your books can lead to big money losses. Simple coding errors in your accounting software, paying incorrectly charged GST, or trading with cancelled companies are mistakes that can put your business at risk. Inaccurate books create inaccurate reports; then you're making important decisions based on the wrong numbers. As a small business owner, you most likely work with a range of subcontractors and suppliers. Some are registered for GST, and others aren't. Some products and services attract GST, and some don't. Bookkeeping and accounting are highly specialised fields. Tax compliance is complicated. And while you may employ a professional to take on these roles for you - as the business owner, you are ultimately responsible for tax and legal compliance.
Staying on top of GST obligations
It easier than you think to make mistakes associated with GST claims and payments. Australian Business Number (ABN) discrepancies and trading with unregistered or cancelled businesses can easily slide under the radar, especially if you’re focused on doing what you’re good at – running your business. Your supplier could be adding GST when they're not registered to charge it, the ABN provided may be invalid or you could be trading with unregistered businesses. Mistakes like these cost your business, but there are also tax compliance implications. You could pay more money to the tax office than needed, or not pay enough and get hit with tax debt and fines. If you submit an incorrect BAS or make incorrect GST claims, the ATO will chase you for the money, regardless of whether it was due to your mistake or your supplier's. Whether you’re doing the books yourself, have someone like a spouse or employee do them, or you hire a bookkeeper, XBert will help you spot the mistakes early. XBert analyses your Xero accounting software and contact records and monitors the Australian Business Register to alert you to any cancelled businesses or issues with a business' GST status and ABN.
Incorrectly charged GST: a small business nightmare
If you pay GST when you shouldn't, then you won't be able to claim that money back, or you don't pay GST when you should, and may end up with a tax debt or fine. Imagine you've been working a supplier for several years. Behind-the-scenes your supplier's in trouble, and their revenue has dropped below the GST threshold. The supplier could forget to instruct their staff or bookkeeper to remove the GST from invoices, or they may be ripping you off. The supplier's invoices continue to include GST even though they're not registered to charge it, but you're unaware of the change. The supplier's latest invoice to you is for $50,000 + GST. You pay, expecting to claim the $5,000 GST. GST mistakes could be devastating to your cash flow and your business, especially when repeated. Tens of thousands of dollars of incorrectly claimed GST accrues. Then, the ATO demands you pay back two years' worth of GST credits you should never have claimed. You're left chasing the supplier to refund the overpayments.
How can you minimise risk for your business?
You can't run a business well without devoting the time, or money if you hire a professional, to keep your books and contact records updated and accurate. Poor bookkeeping leads to money loss, time loss to fix up messes, outdated and inaccurate reports, poor decision making, a greater chance of non-compliance and possibly business collapse. Depending on the size of your business and supplier and customer base, manually checking the Australian Business Register for changes could be a full-time job! You expect your supplier or customer will do the right thing, but that is not always the case, and honest slips like typos and errors do get made often. Discovering business risks early is how you can prevent losing money, and ideally, those manual ABR, ABN and GST checks would be automated. That's where XBert steps up.
Automated GST and ABN checks - saving you time and money
XBert is your bookkeeping safety net, checking for errors and alerting you to risk before it affects your bottom line.You're busy running your business, which makes it hard to focus in real time. XBert helps you stay on top of your financials, thanks to 60+ AI audit risk alerts checking your books multiple times a day. You will be alerted to bookkeeping issues as they arise, and have simple instructions on how to solve them.[gallery size="medium" ids="105923,105922,105921"] You can check your books for errors like incorrectly charged GST, online in minutes. Simply sign up for a 30 day free trial, load your accounting file and you'll be notified as soon as we've found anything, with simple instructions on how to resolve it.