Getting GST right in Zoho Books from the start saves significant reconciliation pain later. Australian businesses need to configure tax codes for GST on income (10%), GST-free sales, input-taxed supplies, and BAS-excluded items before entering any transactions.
Start with your chart of accounts. Map each account to the correct tax code. Revenue accounts typically use 'GST on Income'. Expense accounts use 'GST on Expenses' for items where you claim input tax credits. Some expenses, like bank fees or wages, are BAS excluded.
Configure your tax settings under Settings → Taxes. Enable GST and set your BAS reporting period (monthly, quarterly, or annually). Most SMEs report quarterly. Set your GST registration date and ensure the opening balances reflect any GST already collected or paid.
Bank feeds are where accuracy matters most. Connect your Australian bank accounts and set default tax codes for common transaction types. When reconciling, check that the GST amount on each transaction is correct, bank feed auto-categorisation gets it wrong often enough to cause BAS discrepancies.
For BAS preparation, Zoho Books generates a BAS worksheet showing GST collected, GST paid, and the net amount. Review this against your expectations before lodging. Common issues: missing tax codes on manual journal entries, incorrect tax treatment on imports, and entertainment expenses coded as GST-claimable when they're not.
If you integrate CRM with Books for invoicing, verify that quote tax settings in CRM match Books tax codes. A mismatch here means invoices land in Books with wrong GST amounts, and you'll spend time fixing them at BAS time instead of just lodging.
Published 10 March 2026