Article#: KB2271
Article Date: 25/02/02
Version: N/A
Is Shortcuts an Accrual or Cash Based System?
Shortcuts Software is Point of Sale Software and not Accounting Software. Shortcuts links with both QuickBooks and MYOB to facilitate the preparation of full accounts such as a Profit and Loss and Balance Sheet.
Shortcuts uses an accrual method of accounting in relation to its debtors. ie. The customers of the business can take an account for payment of their goods or service, or pre-purchase goods and services using a gift certificate. Income is brought to account on an accrual basis.
Shortcuts also uses the accrual method in relation to stock. ie. the Expense and GST liability are brought to account when the stock is received.
In regard to Creditors and Petty Cash, Shortcuts recognizes the expense when the payment and details are entered. In relation to Creditors and Petty Cash, Shortcuts operates on a cash basis.
What impact will this have on the preparation of BAS?
When a BAS report is run, Shortcuts will show the GST collected on sales, even if there are some amounts still outstanding from customers who have taken accounts. Shortcuts will also show the GST paid on the expenses that have been entered, stock that has been received and petty cash items that have been entered. As some expenses may not be paid and entered until after the end of the period ie rent, there is a possibility that the amount of GST paid to the Taxation Department is greater than if all the expenses were entered for the period, however this will be offset during the following period when the expenses are entered. The best way to ensure that all of the GST collected and GST credits for a period are recognized is to enter your expenses as soon as the invoice arrives or to use the link to one of the accounting packages which allows you to accrue expenses with out paying for them immediately.
Should you have any questions in relation to this, we recommend that you take this to your accountant or tax advisor and seek their advice. Shortcuts does not provide taxation advice. |
KB2271 - Shortcuts Point of Sale Accounting Method
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