Hi there everyone, my first post! Greetings to this beautiful community of users and creators!
I am leaving behind Windows in favor of Linux (and recommend same to everyone). So I am leaving behind Desktop Quick Books as well (have been using 2010 edition for our business)…
Just downloaded Manager, exploring …
I am in Australia (and I think that’s where this beautiful software is made!). So I will probably need an answer from an Australian expert…
Question 1 - is there a guide for using Manager with Australian GST specifically? If not here is another question:
Question 2 -
Reading guides, I worked out how to create new tax codes.
In pre-set codes, there is GST AUstralia (for GST received), but don’t a pre-set code for GST paid?
I added GST Australia (which is seemingly just GST received). Then created another code for GST Paid and had to create new asset account Tax Receivable to record GST paid. Is that the correct way to go about this?
Thanks!
I’m not the Australian expert. That’s @Brucanna. But your question is easy. Unfortunately, the answer is that you are doing things incorrectly.
It doesn’t matter what country you are in. You should activate all your country’s in-built tax codes that you might use, depending on whether you will be importing, etc. Then, you apply the appropriate tax code whether you are buying or selling. Manager offsets the two. Tax collected on sales goes into Tax payable, an automatic account. Tax paid on purchases come out of Tax payable. The difference is what you owe to the tax authority.
Self-created tax accounts are a complication in your case. And you’ll have further work to do to calculate how much you owe. Also, don’t overlook the Australian tax worksheet under Reports once you have activated an Australian tax code.
No, but GST / VAT world wide is pretty universal in its fundamental operations so the Taxation Guides within Manager covers most countries standard systems. Bonus benefits for Australian users are 1) for those who do importing, there a special tax code to assist there and 2) there is an inbuilt worksheet which provides the required figures for the BAS.
No, The in-built (pre-set) GST 10% - Australia covers both GST received & GST paid, so there is absolutely no need for you to add / create tax codes and / or chart of accounts. As mentioned above the GST received & GST paid are netted off within the BS > Liabilities > Tax Payable account. If you want to see the breakdown then you can generate one of the taxation reports.
Just a historical note: Australia when GST was first introduced had five GST codes, these have been whittled down to two, but some older accounting software which started with the five still have the five as it’s to difficult to change the programme and users historical data.
So in short, activate the required in-built tax codes and do nothing else with regards to setting up.
One other thing I did not mention: the built-in Australian tax worksheet only works with the built-in Australian tax codes. When it comes to reports, Manager needs to know where to look for the data. If you use a custom tax code, you lose the ability to use the worksheet.
Fantastic, thank you for excellent replies!
So, I use GST code in both receipts and payments, and Manager will work out whether it is “Payable” or “Receivable” kind of GST? That’s excellent, so easy!
Look forward to more interactions with you all!
Cheers!