GST Cash Flow Mistakes That Hurt NZ Small Businesses
GST rarely causes problems because of the rate. Problems come from timing.
Mistake 1: Spending GST Collected
GST collected is not income.
Using it for expenses creates pressure later when IRD is due.
Mistake 2: Late Registration
Businesses often pass $60,000 turnover without noticing.
IRD can backdate GST and penalties apply.
Mistake 3: Inconsistent Pricing
Switching between GST inclusive and exclusive confuses customers and causes disputes.
Pick one approach and stick to it.
Mistake 4: Ignoring Filing Frequency
Monthly filing can help cash flow for some businesses.
Six monthly filing can make bills harder to manage.
Summary
GST problems are usually cash flow problems in disguise.
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