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Cashmanager RURAL enables you to choose a GST exclusive or inclusive view – but what difference does it make?

The GST mode determines how budgets and management reports are presented in your farm business. Most businesses prepare budgets in the Cashflow screen as GST exclusive, so the default for new businesses is exclusive.  But you can change the mode at any time through the Setup > Business menu.

Livestock schedules for store and works animals are GST exclusive, so it makes sense that you mirror these prices in your budget.

The automatic price updates in the Dairy Forecaster from Fonterra, Synlait and Westland are also exclusive of GST, no matter what view you’ve chosen.

Exclusive in the Cashflow Screen

When you’re working in the Cashflow screen the program calculates 15% GST on all items, like animal health, milk income and stock sales/purchases for each month. It then predicts whether there will be a refund or payment for each GST period.

Inclusive in the Cashflow Screen

If you’ve chosen this setting, you’re thinking of the items in your budget as including GST. The program then predicts whether there will be a refund or payment for each GST period.

It’s worth noting that when using the transactions screen, your transactions will always display as inclusive of GST, as this reflects what’s happened at the bank.

Pahiatua sharemilkers Cam and Anna Brown choose to use an exclusive view.

“We view GST as something that washes in and out but doesn’t have a true effect on actual income or expenditure. Thus, we much prefer to view our data exclusive of GST. If we need to, we can easily see in the cashflow screen the GST amounts and how that in/out flow affects our bank balance.”

We have some handy resources in our HelpCentre that will help you understand how to correctly choose and set up the right mode for you:

https://support.crssoftware.co.nz/newbusinesssetupwizard.htm.

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