Unearthed Profits: not claiming GST credits means you're missing out on tax savings

This is article not taxation advice. If you require taxation advice, please see a licensed professional.

Imagine the vast Australian Outback, where Darryl, the adventurous owner of Darryl's Outback Tours, leads travellers on thrilling expeditions through this awe-inspiring wilderness.

While Darryl and his team of tour guides are busy guiding adventurers, he may not realise that his business could be missing out on a golden opportunity to claim GST credits.

Exploring the Wonders of GST Credits

GST credits, often considered the "gold nuggets" of the business world, are essentially credits that businesses can claim for the GST included in their expenses.

It's like finding gold in the rugged Outback - a valuable resource that can significantly boost your financial well-being. These credits can be used to offset the GST collected on sales, leaving more money in your pockets.

Calculating GST Credits: The Outback Way

Let's dive into the nitty-gritty of calculating GST credits for Darryl's Outback Tours.

Darryl has an annual turnover of let’s say $1 million, and expenses totalling $250,000. With a GST rate of 10%, let's embark on the calculation adventure:

GST Paid on Expenses = $250,000 * 10% = $25,000

GST Collected on Sales = $1,000,000 * 10% = $100,000

Now, let's navigate through the numbers:

$100,000 (GST Collected on Sales) - $25,000 (GST Paid on Expenses) = $75,000 GST owed (a GST Credit saving of $25,000)

In this scenario, Darryl's Outback Tours would owe an extra $25,000 in GST if they don’t make the most of those GST credits.

That's like leaving a pot of gold buried in the desert sands!

The Desert of Manual Expense Management

Because Darryl manages his expenses manually, he has to sift through stacks of paper receipts under the blazing outback sun, trying to unearth the GST amounts. It's like searching for water in the arid desert - a tough and thirsty task!

Manual expense management is not only time consuming but also prone to errors. Darryl is a terrific tour guide, but navigating the maze of expenses can feel like traversing a rocky terrain.

Automate to Strike Gold: The Smart Solution

Now, envision a scenario where Darryl's Outback Tours embraces automation for expense management. It's like having a trusty guide who leads you to hidden treasures without breaking a sweat.

Automating expense management offers a treasure trove of benefits:

1. Precision: Bid farewell to errors, and let automation handle the calculations with pinpoint accuracy.
2. Save Precious Time: Darryl can spend more time exploring the outback with his adventurous travellers and less time wrestling with paperwork.
3. Staying Tax-Ready: Automation ensures that Darryl's Outback Tours stays on the right side of tax regulations, like a seasoned outback explorer avoiding dehydration.
4. Golden Savings: By claiming every eligible GST credit, you can reduce your tax liability and uncover hidden financial treasures.

Darryl's Outback Tours, like many businesses, could be missing out on valuable GST credit claims. Don't let the vastness of manual processes keep your financial prospects hidden like buried treasure.

Instead, venture into the world of automation and watch your GST savings shine like the outback sun!

After all, in the outback, it's not just about the journey; it's about discovering the riches along the way.

This is article not taxation advice. If you require taxation advice, please see a licensed professional.

If you’d like to eliminate time-consuming admin work with instant budget allocation, automatic GST extraction and real-time reporting, then schedule a demo with us today, or watch a 10-minute recorded demo.