GST and Bookkeeping Basics for Grooming Businesses

Most groomers start their business because they love working with dogs, not because they love bookkeeping. But clear records make tax time easier, help you understand your profit and keep you on the right side of the ATO. This guide covers the basics in plain English. It's general information only, so check the details with your accountant.

Do you need to register for GST?

In Australia, you must register for GST when your business turnover reaches $75,000 a year, or when you expect it to. You can register earlier if you choose. Once registered, you generally include GST in your prices, claim GST credits on business purchases and report it through your Business Activity Statement (BAS).

GST on your prices

If you're registered, your service and retail prices usually include 10% GST. Make sure your price list and invoices are set up correctly. Your software should show GST on each sale, so your reports match what you need for your BAS. In PetConnect, GST is shown on items and in sales reports.

Claiming GST on purchases

When you buy products, equipment, fuel or services for the business, you can generally claim back the GST, as long as you have a valid tax invoice. Keep every receipt, whether paper or digital.

Keep good records

The ATO expects businesses to keep records of income and expenses, generally for five years. That includes sales, invoices, receipts, bank statements and records of any cash payments. Digital records are fine, as long as they're clear and complete.

Separate business and personal money

Use a separate bank account for the business. It makes bookkeeping far easier and gives you a clear picture of how the business is really going.

Track cash carefully

Cash payments must be recorded like any other income. Record them at the time of sale, not later from memory. Software that records cash alongside card payments makes this simple.

Mobile groomers: track your vehicle

If you use a van or car for the business, keep records of fuel, servicing, registration, insurance and kilometres. Your accountant will tell you which method suits you for claiming vehicle expenses.

Set money aside

GST you collect isn't yours to spend; it belongs to the ATO until you lodge your BAS. Income tax will be due too. Many business owners move a percentage of each week's takings into a separate savings account so the money is ready when it's needed.

Make it a weekly habit

Fifteen minutes a week beats a stressful weekend before each BAS is due. Check your takings, match payments to your bank, file receipts and note anything unusual.

Let your software help

When bookings, payments, retail and expenses are in one system, much of the work is done for you. PetConnect includes accounting features such as ledgers, statements and reports alongside your bookings and sales, and same-day settlement makes it easy to match card payments to your bank.

Get good advice

A good accountant or bookkeeper is worth every dollar. They can set things up correctly from the start, lodge your BAS and help you plan for tax. Ask other groomers for recommendations.

Common mistakes

• Mixing personal and business spending. It makes records confusing and claims harder to prove.
• Losing receipts. Without a tax invoice, you may not be able to claim the GST.
• Spending the GST. It feels like income, but it isn't yours to keep.
• Leaving it until the last minute. Rushed bookkeeping leads to mistakes.

Know your BAS dates

Most small businesses lodge their BAS quarterly. Put the due dates in your calendar, along with a reminder a couple of weeks earlier to get your records ready. If you use a registered tax or BAS agent, they may have different lodgement dates, so check with them.

Payroll and super

If you employ staff, you'll also need to handle wages, PAYG withholding and superannuation, and report payroll through Single Touch Payroll. It's another reason to get advice early and use tools that keep records accurate. Paying super on time matters; late payments can attract extra charges.

Keep your records in one place

Records scattered across a phone, a shoebox and several apps are hard to bring together at tax time. Choose one place for receipts, one system for sales and one bank account for the business. Your accountant will thank you, and you'll spend less paying them to sort things out.

Review your numbers, not just your tax

Bookkeeping isn't only for the ATO. Looking at your income and expenses each month shows which services are most profitable, where costs are creeping up and whether prices need adjusting.

Start today

If your records are behind, don't wait for the perfect system. Open a separate account, start saving receipts properly and book a chat with an accountant. Every week of good habits makes the next BAS easier.

See how payments and records work in PetConnect on our billing and invoicing page.