Accounting Question

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JayADee

2148 posts

Uber Geek

#171489 20-Apr-2015 16:20

I'm filling in an ir3 form for the first time. I have one invoice outstanding from last business year. Do I pay tax on that this tax year or next tax year?

I would think next tax year since I haven't got the money yet.

I'm making only a very small amount so I can't really afford to ask an accountant and ird was zero help.

Thanks!

littlehead

214 posts

Master Geek

#1287842 20-Apr-2015 16:29

According to the IR3 guide

A cash-basis person doesn’t need to use the accrual method to calculate income. You qualify as a cashbasis
person if:
–– on every day in the income year the absolute value of all financial arrangements added together is
$1,000,000 or less, or
–– the absolute value of your income and expenditure in the income year under all financial
arrangements is $100,000 or less, and
–– the deferral of income or acceleration of expenditure using the cash method rather than the accrual
method is $40,000 or less.

Cash basis is based on when you actually receive the money. Accrual is when invoices are dated.

Unless the outstanding invoice is greater than $40,000 or your income is greater than $100,000 then you file it when you receive the money.

JayADee

2148 posts

Uber Geek

#1287997 20-Apr-2015 19:24

Thank you!

JayADee

2148 posts

Uber Geek

#1306468 17-May-2015 08:10

Ok, another question. Which part of the ir3 or ir10 online do I put the home office claim for phone and Internet and power expenses under?

And (less importantly I guess) the mouse and keyboard I bought?

As I said before, I'm making very little money so getting an accountant is out of the question.

Thank you for your help.