The idea of setting up a new business is a job that
takes a lot of effort. While working on setting up a new business, there is a
lot of things that the users would have to give their attention t, and this is
in no way an easy task. A major part of starting a new business is the
accounting perspective. Xero can efficiently aid a user who is willing to start
a new business, as this software provides the users with all the necessary
features needed by the users. The users can get a clear understanding of this
by doing a complete run through this blog. The users would also have an
alternate option of connecting with Xero
tech support phone number ,where the users would get all the assistance that is required.
Understanding
the use of Xero in a new business
If the user is buying or selling good and service,
then it is necessary that the business is registered for the Goods and Services
Tax (GST).
GST is mandatory for the following reasons:
·
If your business has a GST turnover of $75,000 or more.
·
If your non-profile organization has a turnover of $150,000
per year or more.
·
If you are an overseas business importing services, digital
products, or goods worth less than $1000 and make over $75,000.
With the help of Xero, you would simply require to set
up the software accurately, and you would need to know whether you are on a
cash basis or accruals basis.
The process of
computing GST on ‘Cash Basis’ using Xero
Xero’s cash basis GST return is when the user pays
money for something in return for a product. The transactions that you would
have to provide in your Xero data file are as given below:
·
Invoice payments received
·
Bills Paid
·
Expense claims paid
·
Manual journals on the journal date where the checkbox shows
journal on cash basis reports are selected.
·
Spend money transactions.
·
Receive money transactions
The process of
computing GST on ‘Accrual Basis’ using Xero
Xero’s accruals basis GST return is when you receive
any payment for a sale, or when you receive the invoice from your supplier or
if you make a payment for something that you have purchased. The transactions
that you would have to provide in your Xero data file are as given below:
·
Invoices on the invoice date
·
Bills on the bill date
·
Expense claims on the reporting date
·
Manual journals on the journal date
·
Spend money transactions
·
Receive money transaction
These are basics that you would need to understand
while using the Xero software for a newly started business. If you fail to
understand any given information, you can easily connect with Xero
customer service phone number, where the professionals
would give you detailed information about the features and functions.
Source URL: Xero-Starting Your New Business and GST
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