If you've ever bought anything in New Zealand, chances are you're familiar with the term GST. This acronym stands for Goods and Services Tax and is applied to most transactions that occur within any company's cashflow, from the largest corporations down to small business accounting. Naturally, if you're planning to start up your own business, it would be a good idea to wrap your head around the basic concepts involved with bookkeeping, in order to both maximise your own profits and avoid getting into legal trouble. Basic Rundown Businesses in New Zealand are able to register with the Inland Revenue Department (IRD) to collect GST on the government's behalf. This is built into the prices of any goods and services you sell to the public, hence the name of the tax. After this, you are able to claim back GST on any products or services you've purchased as a business expense. This is taken care of through your yearly GST returns, filed by you to the IRD, where you pay the difference between the GST spent and earned throughout the year. Why you should register If your business earns over $60,000 per annum, you're required to become GST-registered by law. However, there could be benefits for new small businesses, especially if your expenses are outweighing your profits during those early periods. By registering, you may be able to make some money back at regular intervals by claiming GST back on certain products and services employed by your business. Filing GST regularly Depending on how much business you do, you can choose to file tax once every month, two months or six months. This is where utilising a streamlined small business accounting software like the CashManager range from Accomplish can come in handy. These programs allow you to keep a close eye on your cashflow, including GST-applicable transactions, allowing you to simply and easily file your returns in full and on time without stress.