re: gst rubbish GST is added to an invoice when you invoice the...

re: gst rubbish GST is added to an invoice when you invoice the customer, equally when you buy something you pay the supplier GST. If you owe the ATO GST it means you have collected (customers) more GST than you have paid (suppliers). The profit/loss has both revenue and expense items- none of these figures include GST.

GST does not affect profits. It only effects cashflow which by definition is the timing of money in & out of the business.

Interestingly if TOX customers pay the account on credit at 45 or 60 days and the GST must be paid at 30 days there is a negative cashflow.

My understanding of cashflow statement preparation is recepits from customers and payments to suppliers must be grossed up to be GST inclusive.

My take on the cashflow for the qtr was a large amount disclosed under other working capital of 539k, which tells us SFA of the cash going out of the business. As a note this 539 was explained as GST payment 539k and 55k Capex.

That 55k arguably should be reported under cashflows from investing activities.

I didnt like the cashflow because I want transparency on the 539k, all we do know is staff costs for a qtr = 137k

...understand now!