In Cash Manager Focus you can select the basis your business claims its GST on - payments or invoice.
- Payments basis
You would claim or return GST based on the date payment is made/received in your bank account.
This is the more commonly used of the two options.
- Invoice basis
You would claim GST based on the invoice date on invoices and credit notes.
It’s a good idea to check whether you have set-up Cash Manager Focus for payments or invoice basis GST and also discuss with your accountant what’s best for your business.
What about Hybrid basis?
Hybrid basis is another GST basis that uses a combination of Payments and Invoice basis. It's not as popular as it can get complicated.
However, if you are Hybrid basis for your business, talk to our Customer Services team and they can help you to set up your Cash Manager Focus farm business for it.
If you want more information about GST, visit IRD’s website.