Frequently Asked Questions

Frequently asked questions (FAQs) related to bookkeeping.

Welcome to our business accounts and bookkeeping FAQ! We’re glad you’re here. Below are some of the most common questions we receive. We hope you find these FAQs helpful. If you don’t see your question here, please don’t hesitate to reach out to us directly Contact Us.

What's the difference between cash and accrual accounting?

Take a look at our blog post that explains the difference between cash and accrual basis accounting.

What does ATO stand for?

Australian Taxation Office.

What does BAS stand for?

Business Activity Statement

What does IAS stand for?

Instalment Activity Statement

Where is the login for MyGov?
What documents do I need to open a business account?

Requirements for setting up a business bank account vary by bank and business type. You’ll need to provide documents and information.

  • business name
  • primary business address
  • Australian Business Number (ABN)
  • industry type
  • identification for all owners or partners.

For More information checkout Business.gov.au What you will need to setup a business bank account

Can I deduct expenses that I incur before officially starting my business?

Yes, you can claim a deduction for your business expenses that were incurred prior to your ABN registration, provided that they meet the following three conditions:

1. The expense must have been for your business and not for private use.

2. If the expense is for a combination of business and private use, you can only claim the portion that was used for your business.

3. You must have records to support your claim.

If you are registered for GST, you may also be eligible to claim a GST credit.

For more information on business tax deductions and claiming GST credits, please visit the ATO website. 

When should I hire a bookkeeper for my business?

As a business owner, hiring a bookkeeper early on is crucial. Delaying this step can cause cash flow problems and result in penalties. Late lodged superannuation can also attract fines. If you find invoicing delays, lax debt collection, complexity with new hires, falling behind on bookkeeping tasks and frequent late lodgments. Bookkeepers fees are tax-deductible penalty fees are not. For more check out our blog.

What records do I need to keep for my small business?

Record-keeping is crucial for small businesses. Here is a resource link to help with it. ATO

Last updated 23 June 2023

What’s the best way to track my business expenses?

Here’s a blog we wrote on the most effective methods for business expenses

How often should I reconcile my business accounts?

We have written a blog post about how frequently a small and medium-sized enterprise should reconcile their business account.

What does a bookkeeper do?

A bookkeeper looks after the bookkeeping. Bookkeeping is a system of processes for keeping financial records of day-to-day transactions such as purchases, sales, payroll, inventory, and bank reconciliation.  Bookkeeping is imperative to the success of a business.

Bookkeeping used to be a series of handwritten journals in books, thus ‘bookkeeping’. Whilst these manual hand-written journals are the steps we bookkeepers take to ‘learn’ how to become a great bookkeepers, we are fortunate these days that journals are kept in online accounting software in the cloud.

​Bookkeeping prepares the business with financial reports – and helps with budgets and cash-flow forecasting.

Bookkeeping provides business-critical information for financial health, which is essential for goal setting, making sound business decisions, obtaining finance, growing the business, and sustaining that growth. 

Here at My Great Bookkeeper we are more than a bookkeeper, we are a BAS Agent.

GST & BAS 

What is our My Great Bookkeeper BAS Agent number?

Our BAS Agent number is 26110827.

To check if a BAS Agent is registered, visit the Tax Practitioners Board.

What is the Formula to calculate 10% GST Exclusive Amount (GE$)?

The GST Exclusive Amount = GST Inclusive Amount divided by 11, multiplied by 10. GI$/11 x 10.

For example: $77/11*10 = $70 GST Exclusive

What is the Formula to calculate 10% GST Inclusive Amount (GI$)?

The GST Inclusive Amount = GST Exclusive Amount times 1.1

GE$*1.1 = GI$. For example: $62*1.1= $68.20 GST Inclusive

What is The Formula to calculate 10% GST on top of Sales Amount (S$)

Total Sales Amount times by 10% = 10% GST – S$*10%=GST Example: $32*10%= $3.20

How do I know if I need to register for GST?

If you have gone over the GST Threshold or are about to go over. Budgets and projected cashflow forecasts are a good way to monitor if you need to register for GST.  If you have a lot of start up assets to purchase known as capital acquisitions you may want to claim the imputation credits and will need to be registered for GST.

When do I register for GST?

You need to register within 21 days of GST turnover exceeding the threshold, you will need to back date your GST registration to the date you go over the threshold.

Help I have gone over the GST threshold what do I do now?

You must back date your registration to the day your turnover exceeded the threshold. You may have to absorb the cost if you did not charge GST on the sale, monitoring your financial year turnover can prevent this.

How do I registered for an Australian Business Number (ABN)?

We can do this for you or Click Here

How do I register for GST?

To register for GST, fill out our simple one-page form, it takes on average 2 minutes. Submit and we will check it. We process it with the ATO and confirm your registration usually within 4 hours. Coming Soon – but don’t wait call us or Click Here

What is the Threshold for GST?

For business or enterprise $75,000 or more – see Working out your GST turnover non-profit organisation has a GST turnover of $150,000 per year or more

How do I calculate my GST Threshold?

Your GST turnover is essentially your gross business income excluding GST included in sales, any sales that are not for payment, input-taxed sale, and sales not connected to Australia. To calculate whether you are over the threshold you simply take away any of the exclusions from your gross business income.

To determine if you meet the threshold look at your current GST turnover and your projected GST turnover. If turnover for the current month plus either the previous 11 months, or future 11 months equals $75,000 you must register for GST.

How do I create a My Gov Account?

Got to My Gov webste and click on the “Create a myGov account” link

How do I link My Gov to the ATO?

Please follow the steps outlined here

General Questions

How do I sign in to Xero Accounting Software?
Click here to sign-in to Xero
Bookkeeper Wanted?

You are in the right place, please go to our accounting services pages, or contact a savvy bookkeeper today, your good local bookkeeper.

For Bookkeeping and BAS related support