Starting up a new business is never easy and you get a never ending barrage of opinions about what you should do and when, particularly when it comes to GST Registration. The biggest piece if advice is do what is right for you as no one business is the same as another.
Here are some of the Pro’s for GST Registration:
- It gives the business a professional feel (only very small businesses are un – registered),
- The first few BAS’s are usually refunds due to start up costs,
- It encourages good bookkeeping habits from the beginning,
- Transitioning to GST at a later date is a little complicated,
- If you register for monthly it is less of a cash flow issue.
Here are some of the Con’s for GST Registration:
- Registration requires additional administration and has compliance costs,
- You can charge a lower rate attracting more clients in the initial period if no GST
- There can be cash flow implications
Best of luck in your new venture!