QCE Accounting - Unit 3 - Cash management

GST payable, receivable and spreadsheet analysis

Learn GST cash-flow schedules, GST payable and receivable, spreadsheet input and report areas, formulas and what-if analysis for QCE Accounting.

Part of the free QCE Accounting notes library for Unit 3: Cash management.

Updated 2026-05-18 - 5 min read

QCAA official coverage - Accounting 2025 v1.4

Exact syllabus points covered

  1. Prepare a statement of GST payable and GST receivable for a cash budget.
  2. Distinguish GST-exclusive, GST-inclusive and GST-free amounts where relevant.
  3. Apply the correct timing of GST cash receipts, payments and settlement in a cash budget.
  4. Create a spreadsheet input area containing assumptions and source data.
  5. Create a spreadsheet report area that presents the cash budget and decision outputs.
  6. Use cell references and formulae so changes to inputs flow through the spreadsheet model.
  7. Use spreadsheet what-if analysis to generate alternative cash budgets.
  8. Evaluate proposed changes to financial management practices that affect the cash budget.
  9. Create tables, graphs and accounting calculations that support a cash management decision.
  10. Create a business report communicating analysis, evaluation, a decision and recommendations about cash management.

Goods and services tax affects both recording and cash management. A GST-registered business collects GST on taxable sales and pays GST on taxable purchases. The business does not keep the net GST collected. It settles the net amount with the Australian Taxation Office through its activity statement cycle.

In QCE Accounting, GST questions often connect the cash budget to a GST payable or receivable schedule. You need to distinguish the GST included in cash received from customers, the GST paid to suppliers, and the net amount that will be paid to or refunded by the ATO.

Spreadsheet cash budget model

Original Sylligence diagram for accounting cash budget layout.

Spreadsheet cash budget model

GST payable and receivable

| GST item | Meaning | Usual effect | |---|---|---| | GST on sales | GST collected from customers on taxable sales | Increases GST payable | | GST on purchases | GST paid to suppliers on creditable acquisitions | Increases GST receivable or reduces GST payable | | Net GST payable | GST on sales exceeds GST on purchases | Cash outflow to the ATO | | Net GST receivable | GST on purchases exceeds GST on sales | Cash inflow or refund from the ATO |

If figures are GST-exclusive, GST is usually calculated by multiplying by 10 percent. If figures are GST-inclusive, the GST component is one-eleventh of the inclusive amount because \$110 inclusive contains \$10 GST.

$ \text{GST on GST-exclusive amount}=\text{Amount}\times 10\% $

$ \text{GST in GST-inclusive amount}=\text{Inclusive amount}\times \frac{1}{11} $

GST schedules in a cash budget

A GST schedule gathers GST on cash receipts and cash payments for a reporting period. The timing depends on whether the business reports GST on a cash basis or accrual basis. At school level, the task instructions usually specify the approach.

| Step | Question to ask | |---|---| | 1 | Which sales and receipts include GST? | | 2 | Which purchases and payments include GST credits? | | 3 | Are any items GST-free, input taxed or outside the GST system? | | 4 | Is the net amount payable or receivable? | | 5 | In which month does the ATO settlement appear in the cash budget? |

Items such as wages, drawings, loan repayments and depreciation normally do not include GST in school cash budgets. Purchases of inventory, equipment, rent and many services may include GST if the business is registered and the supplier charges GST.

Spreadsheet input and report areas

A spreadsheet model separates assumptions from outputs. The input area contains variables such as sales growth, collection percentages, supplier payment timing, GST rate, loan repayment amount and planned asset purchase date. The report area presents calculated cash budgets, GST schedules, charts and ratios.

This separation matters because it makes what-if analysis reliable. If the GST rate or credit collection rate is entered once in the input area, formulas can reference that cell throughout the budget. Changing the assumption updates the report without manually changing every calculation.

| Spreadsheet area | Good practice | |---|---| | Input area | Use clearly labelled assumption cells; avoid hard-coding variables into formulas | | Processing area | Use formulas for schedules such as receipts from accounts receivable and GST | | Report area | Present budgets, charts, summaries and recommendations | | Validation | Check opening plus receipts minus payments equals closing cash | | Formatting | Use consistent headings, currency formats and clear negative values |

What-if analysis

What-if analysis tests how a decision or assumption changes the budget. Examples include increasing advertising, changing customer credit terms, delaying equipment purchase, borrowing to finance expansion or outsourcing a data function.

Good evaluation connects the spreadsheet result to a business judgement. A decision may improve cash in the short term but weaken profit, customer service or long-term capacity. Another decision may create a short-term cash shortage but be worthwhile if it increases future sales and can be financed safely.

Worked example

Quick check

Sources

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