BOOKKEEPING looks set to boom once the GST comes in.
BOOKKEEPING looks set to boom once the GST comes in.
The Bookkeeping Network principal Alex Polglaze said most people were unaware the GST was really a bookkeeper’s tax and not an accountant’s tax.
“Many people think simply dividing by eleven will be enough tocomply with the GST. This is not the case,” Mr Polglaze said.
“GST is calculated at the transaction point. All rounding is done there.”
With rounding, the GST may not turn out to be one-eleventh of the transaction.
“This tax will be a boon for bookkeepers because the GST work has to be done daily,” Mr Polglaze said.
“People in business who have a good bookkeeping system will probably notice a very slight increase in their transaction costs.
“However, for those businesses that have no bookkeeping systems, the increase in transaction costs could put them out of business.”
West Coast College of TAFE’s Pam John said the college’s courses focussing on electronic accounting software such as Quicken, Quick Books and MYOB had been booked solid for July.
Two new course dates have already been added.
“Most people attending the courses are bookkeepers, small
business people, people getting these packages for the first time and people looking to update their skills to get work,” Ms John said.
She said a lot of accountants were pushing their clients towards certain types of bookkeeping packages.
Fallon Group director Tony Ince said accountants had been moving the bookkeeping onus onto their clients over the past five years.
“Accountants are wanting to move towards being business consultants rather than bean counters,” Mr Ince said.
“Also, moving the bookkeeping role onto the clients helps them understand their business better.”
However, Small Business Development Corporation managing director George Etrelezis believes many small business owners will take on the bookkeeping role.
“What we’ve found is small businesses, influenced by their accountants and the availability of products, have gone for computerised bookkeeping,” Mr Etrelezis said.
“Packages such as MYOB have just gone crazy with the investment by small businesses – and the $200 Federal Government GST vouchers have helped this.
“A lot of businesses that were putting off computerisation are now doing it because of the GST.
“Many companies are simply buying upgraded cash registers that record the GST components of each transaction.”
Mr Etrelezis believes the GST will have a bigger impact on small businesses than the Y2K problem.
“Businesses will have to be right on the ball with their monthly and quarterly returns,” he said.
“There is a real need for speed in determining the businesses obligations to the tax man.”
The Bookkeeping Network principal Alex Polglaze said most people were unaware the GST was really a bookkeeper’s tax and not an accountant’s tax.
“Many people think simply dividing by eleven will be enough tocomply with the GST. This is not the case,” Mr Polglaze said.
“GST is calculated at the transaction point. All rounding is done there.”
With rounding, the GST may not turn out to be one-eleventh of the transaction.
“This tax will be a boon for bookkeepers because the GST work has to be done daily,” Mr Polglaze said.
“People in business who have a good bookkeeping system will probably notice a very slight increase in their transaction costs.
“However, for those businesses that have no bookkeeping systems, the increase in transaction costs could put them out of business.”
West Coast College of TAFE’s Pam John said the college’s courses focussing on electronic accounting software such as Quicken, Quick Books and MYOB had been booked solid for July.
Two new course dates have already been added.
“Most people attending the courses are bookkeepers, small
business people, people getting these packages for the first time and people looking to update their skills to get work,” Ms John said.
She said a lot of accountants were pushing their clients towards certain types of bookkeeping packages.
Fallon Group director Tony Ince said accountants had been moving the bookkeeping onus onto their clients over the past five years.
“Accountants are wanting to move towards being business consultants rather than bean counters,” Mr Ince said.
“Also, moving the bookkeeping role onto the clients helps them understand their business better.”
However, Small Business Development Corporation managing director George Etrelezis believes many small business owners will take on the bookkeeping role.
“What we’ve found is small businesses, influenced by their accountants and the availability of products, have gone for computerised bookkeeping,” Mr Etrelezis said.
“Packages such as MYOB have just gone crazy with the investment by small businesses – and the $200 Federal Government GST vouchers have helped this.
“A lot of businesses that were putting off computerisation are now doing it because of the GST.
“Many companies are simply buying upgraded cash registers that record the GST components of each transaction.”
Mr Etrelezis believes the GST will have a bigger impact on small businesses than the Y2K problem.
“Businesses will have to be right on the ball with their monthly and quarterly returns,” he said.
“There is a real need for speed in determining the businesses obligations to the tax man.”