Recording Bank Fees, Merchant Fees and Interest

Bank and merchant fees are a forgotten evil when it comes to recording them correctly in your accounting system. And then there’s the interest: it all adds up.

When it comes to GST… whoa… look out. Often bank and merchant fees are incorrectly claimed for GST which can potentially lead to all kinds of issues, not least being audited by the ATO.

General bank charges are already input taxed. Merchant fees attract GST but PayPal merchant fees do not attract GST and yet eWay merchant fees are subject to GST. Are you confused yet? The construction/trade industry have been subject to GST revisions that result in more money having to be paid out to the ATO, simply due to incorrect allocation of GST.

Accurate record keeping goes a long way towards ensuring that these sort of errors don’t slip through. Maintaining an accurate accounting system will keep your businesses core transactions above board and under the ATO radar. Because this is our area of Trade specific expertise, Tradie Bookkeeping Specialists can do all this and much more for you.

Bank interest is a financial supply and is input taxed. There’s insurance payments which can contain some GST free components, care registration, international postage, reporting wages and superannuation expenses, claiming tax credits on government charges, dividends, recording drawings and capital introduced.

All this may be information overload if you are not “into” your figures and accounting. With the right systems in place and the right team taking care of your accounting and bookkeeping your bookkeeping will be a breeze.

Tradie Bookkeeping Specialists are your team of choice. Our experience, integrity and our knowledge of the trade industry put us at the forefront for all your bookkeeping and accounting needs.