GST is just one of those things in life that you just can’t avoid. Businesses have obligations to report their quarterly GST on Sales and GST on Expenses to the ATO and medical providers are no exception! It’s the financial equivalent of that awkward relative who pops up at the odd family gathering. You brace yourself to deal with them and breathe a sigh of relief when it’s over knowing that you’re safe for the next few months. Luckily for you, Genie has a few neat features to make your quarterly BAS experience as easy as possible!
Before you begin
There are two methods of reporting GST; cash or accruals basis. Cash basis means you will only need to report GST on sales for which you have received payment and for expenses that you have paid. Accruals basis means you will need to report GST on the invoices raised and bills received regardless of whether any payment has changed hands. If you are unsure of which reporting method to use, contact your accountant or the ATO for confirmation.
There are some goods and services that will always attract GST, for example Botox injections and cosmetic procedures as well as many other products. Take a look around at what products you sell, and take some time to go through your billing item list in Genie to create a list of items which should always have GST.
For the items that will always attract GST, you will need to update the individual billing item in Genie to reflect this. Now that you have your list of GST billing items, you can configure them within Genie. This means there's no need to remember which items do or don’t have GST. Let Genie do the work for you!
Navigate to Open > Billing Items and double click on the item to open the edit item window. To let Genie know that this item must always include GST, tick the option This item includes GST in the price.
This means if your item fee is $50, the GST will be calculated at $4.55. If you want to charge GST on top of the item fee, you will need to edit your item fee to be $55 so the GST will be calculated at $5.
There may be some account holders which you will always charge GST, such as a solicitor's firm who requests a medical report from your practice for a case. As long as an account holder has been created as an organisation, you can configure their account holder record to tell Genie to always add GST when creating an invoice for them.
Navigate to Open > Account Holders and double click on the account holder to open the edit account holder window. To let Genie know to always charge GST￼, tick the option to Charge GST for ALL items.
When creating an invoice, you may realise that an item doesn’t have GST when it should. You can let Genie know that this item should contain GST by clicking a checkbox on the invoice, instead of having to go back into your billing items list and editing the item.
After you have added an item number to an invoice, simply tick the GST column. You will notice that the GST is then calculated and added onto the invoice.
Note that when ticking this box at the time of invoicing, GST will always be added on top of the fee charged. If you wish to include GST in the fee, you will need to adjust the fee charged by double clicking on the item number and editing the amount.
Once a quarter, you’re most likely to be contacted by your accountant requesting BAS information and to forward them the relevant reports for the period. There are three reports in Genie that you can provide to your accountant or use yourself to complete your BAS; the GST Report, the Billing vs Income Report and the Payments and GST report available within Daily Banking.
The GST Report
The GST Report can be found via File > Maintenance and Reports > Practice Analysis > GST Report. Select the correct quarter and whether to run the report for all doctors or a particular provider.
In the Report Builder window, go to the Columns tab and select the following columns in the following order:
- Transaction Date;
- GSTBilled; and
In the Groups tab, select [GSTRecord]Provider and tick Group column data by Ascending. For GSTBilled and GSTReceived, tick Group column data and Show Group Subtotals. This will sort the report by each provider alphabetically and sum the total GST Billed and the total GST Received for each provider.
In the Formats tab, select SUM for both GSTBilled and GSTReceived.
In your report, if you use GST on an accruals basis, your GST on sales value is the total of the GSTBilled column. If you use GST on a cash basis, your GST on sales value is the total of the GSTReceived column.
The Billing vs Income Report
The Billing vs Income Report can be found via File > Maintenance and Reports > Practice Analysis > Billing vs Income Report. Select the correct quarter and whether to subdivide the report based on provider or month. The columns in this report can be used to complete your quarterly BAS.
- First GST column indicates the GST on all invoices raised during the period
- Nett Billing indicates total invoices raised for the period excluding GST, discounts and credits
- Receipts indicates total receipts during the period including GST
- Second GST column indicates the GST on all invoices which were paid during the period
If you use GST on an accruals basis, you will need to look at the Billing, first GST and Nett Billing columns. If you use GST on a cash basis, you will need to look at the Receipts and second GST column to complete your BAS.
The Payments & GST Report
Within the daily banking, Genie has an inbuilt Payments & GST Report which can also be used to assist you in completing your BAS.
This report shows the breakdown of GST on each payment in the batch. The Fee and Payments columns are both GST inclusive figures.