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What you really need to know about the Non-Cash Method 'accruals'.

Most bigger organisations which have a combined turnover of $10 million and above must utilise the non-cash bookkeeping technique.   Businesses with a combined turnover of less than $10 million can select the cash method or non-cash method to account for GST.

Utilising the non-cash or accruals way will mean that on the business activity statement for a certain period, for example 1 January 2019 to 30 March 2019, you will include:

  • any tax invoice you issued to a customer,
  • any received payment for a sale,
  • any received invoice from your supplier,
  • any payment you made for a purchase.


If you issue a valid tax invoice to your customer, under the accruals method the GST is payable on the sale you make in the business activity statement(BAS) reporting period.

Using our above example for the period 1 January 2019 to 30 March 2019.  This means if you issued the tax invoice on 1 February 2019 for $1,100 including GST, $100 GST is accounted for in the January to March 2019 BAS.

If you received a part payment or your received a full payment on 31.12.18 before you issued your customer a tax invoice, then you will need report the payment in the October to December 2018 BAS.


To claim a GST credit, you have to have a tax invoice for a purchase.  Also, you have four years to claim credits.   (There are rules with this also – get in touch and I can email a cheat sheet to you for this.)

So, if you pay your supplier as you received a tax invoice from them, or you make a payment, you can claim the GST credit – but you don’t have to.   (Again there are laws with this in Australia – get in touch.)

I hope this blog has assisted you.  Don't forget, we had to do a bit of training to ensure we understand everything about GST there is to know.  We don't expect for you to know everything that Agent's know.