GST stands for Goods and Services Tax which your business normally needs to register once your business has a turnover that exceeds $75,000.
When registering your business for GST you will need to choose an accounting method for GST - which can either be on a cash or non-cash basis.
Cash Basis
If you intend to account for GST on a cash basis, this means you will account for the GST and record the transaction at the time payment has changed hands between you and your client/customer.
E.g. if you provided an invoice on Wednesday but only received the payment on Thursday, the transaction and GST will be recorded on Thursday.
Non-Cash Basis
If you intend to account on a non-cash basis, this will mean that you will account for the GST and record the transaction at the time an invoice has been issued, but not necessarily when a payment has been made.
E.g. if you provided an invoice on Wednesday but have not received payment yet, the transaction and GST will be recorded on Wednesday.
There may be reasons why a business may select non-cash (such as expecting turnover to exceed $2 million or receiving specialist advice) but 9 out of 10 businesses that register for GST with Lawpath intend to account for GST on a cash basis.
If you'd like more information on accounting methods for GST, you can visit the ATO website info page here.