#cloudtips: Accidental ‘double dipping’ on GST
Stop “double dipping” on GST! Many business owners make mistakes in the Hire Purchase/Lease of Vehicle of Plant or Equipment area of the BAS. Initially, the client (or their accountant) will claim the full GST component in the first quarter that they purchase their vehicle.
The confusion sets in when they record their regular monthly payments. The client will either continue to code it as a GST or as a Capital Expense. Both the tax codes GST and CAP appear on their BAS Reporting sheet, effectively causing them to ‘double dip’ on the GST.
Always check your purchase invoice and BAS records to make sure you code your monthly repayments accurately.
To find out more about Xero and how it can help your business, contact Bottrell Business Consultants on (02) 4933 6888 or firstname.lastname@example.org