Hello, I have a (well a few) stupid tax questions to ask and I cant work out where to find the answers without having to give a local accountant hundreds of dollars. Its not so much about the $100's of dollars I would have to pay out but rather the look on his face when I ask that bothers me. hee hee So I am starting my own business as sole proprietor, but I am a little confused as my first job will be just prior to the end of financial year. so from a tax perspective is earnings considered when you do the work i.e. June or when you get paid i.e. July? Sorry I'm an idiot I know
Do the work but start your tax records from a fresh new tax year and bill it out in the new tax year.
Hi intrigue,
From my understanding it is when you get paid the income. So I would invoice to get paid for July.
You would be better off delaying payment until July. Save you a full year of tax accountant fees etc.
So I do the work in June… and I invoice in early July. On the invoice do I state the invoice is for works carried out in June? (just so I'm clear)
There are 2 book keeping methods with regard to the ATO. At time of invoice or at time of payment. I've always worked on time of payment. Send your invoice out at the end of Jun for Jul payment.
Cash basis or accruals? It is generally when you get paid, but not always.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:Cash basis or accruals? It is generally when you get paid, but not always.Yep. When you set up a set of accounts on MYOB for example it will ask you this when you configure the preferences/settings
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