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Warning! GST changes are coming - and getting sorted might not be as simple as you think.

If you leave it until 1 October to worry about this, it’s probably too late. Sue Hirst has already pointed out some of the pitfalls involved – but I’m in discussions with IRD on two matters that could mess up some systems. So don’t leave it any longer – check out how it will affect you.

One large firm has told us their September bill will include GST at the new rate – because it always takes a week or so for them to arrive. Obviously that’s OK for their system – but there’s a good chance that many of their customers will not get the 30 September adjustment right.

Most importantly will your computer system handle it? Some years ago I abandoned “manual” computer tools (e.g. spreadsheets) because for little cost businesses can run modern accounting programs that will do everything most people want – and reduce the likelihood of errors. So I don’t want to know about all those manual systems now. But what about the main programs?

Xero assure us they will be able to handle it all – although I suspect that even there will be cases that require some fiddling. If IRD hasn’t thought through the issues I’ve raised with them, I doubt that Xero will have thought of everything. So while most situations should be covered, you still need to keep your wits about you.

Moneyworks similarly claims their systems are ready and should require little extra work. http://www.cognito.co.nz/nzgstchange.php

QuickBooks is issuing a change to their 2010/11 software later this month. Now if you’re not on the current version that’s a problem. While it is possible to do GST using older software, it’s not a good idea. So even though I usually recommend clients upgrade every three years or so, currently I am recommending everybody does it. And I’m thinking of asking anyone who doesn’t to go elsewhere.  http://www.quicken.co.nz/pdfs/GST.pdf

MYOB has a slightly different approach. If you feed in your product’s serial number, they will tell you what they recommend. http://www.myob.co.nz/taxchange

Sage Line 50 also provides details on their site on who needs to upgrade – basically anyone prior to two versions ago. http://new.passage.co.nz/software

Those who use BankLink probably think they’re laughing – but even they will need to list debtors and creditors at 30 September (assuming they’re registered on a payments basis).

So don’t leave it any later to at least check. This list hasn’t even covered any of the points covered by Sue Hirst – and there aren’t going to be enough people to do everything that has to be done in the short time available. So if you leave it, you could well be out of luck.