Hello, quite new to this so I’m looking to make sure I’m doing all this correctly.
Firstly, i run a business that does property maintenance. With 2k Owner introduced funds - Which equates to 2k Cash at bank
For simplicity stakes, I’ll run through one invoice etc.
Job:1 is install a man-hatch into a roof.
I pay for the man-hatch up front out of the 2k owner introduced funds. Man hatch cost $30.91 excl gst - $34.00inc gst. I import my bank transaction for this, and reconcile the transaction as a cost of goods sold expense.
Is expense the correct location for this?
I invoice the customer for the installation of this man hatch. and also the purchase. I input the installation under the sales account, and i input the man hatch under sales as well.
Man hatch cost: $34 inc GST - Just wanting reimbursement for the product. No markup
Installation: $86inc GST
Is this also correct way of accounting this?
Assuming this is all i input (Leaving deductions out such as fuel etc to simplify)
Should the GST Bas Calc be this for the above:
1A GST on sales $
1B GST on purchases $
9 Your payment $
Just making sure that materials i use to complete a job are being correctly input.
Any response would be great.