ABN Registration

How to apply for an ABN, the information you will need and the support to maintain your ABN.

Should I account for GST on a cash or accruals basis?

The main difference between accounting on a cash or accruals basis is the time when liability to pay GST occurs.

Cash Basis

If you elect to account on a cash basis, then you are liable to pay GST once you have received it from your customers. At the same time, you cannot claim GST credits until you have paid for your products/services. For example, if you invoice a customer on Monday and receive payment on Friday then the income is recorded in your books against Friday’s date. The cash basis is the more common choice for many businesses.

Accrual Basis

On an accrual basis, you have the legal duty to recognise GST once invoiced even though you may not have received or made payment for the goods and services yet. For example, if you invoice a customer on Monday but don’t receive payment that day, you will nonetheless record the income against Monday’s date.

All information provided on this webpage is general information about our products and services. Nothing on this webpage is intended to be professional advice of any kind and should not be relied on as such. You should obtain specific financial, legal or other professional advice before relying on the content of this webpage. By not seeking such advice, you accept the risk that the information on this webpage may not meet the specific needs of your business. Our liability is limited to the maximum extent permitted by applicable law in accordance with our website terms and conditions.

Updated — Mar 14, 2019

Ready to start your company?

Start your company, today.