Invoice paid next financial year

Hi,

This question isn't directly related to investment.

I did some work for my current employer last financial year (FY) before I become an employee (helping out a friend's startup). Since coming on board as an employee, my friend has asked me to bill the company for the work as a contractor.

So I performed the work last year, I will invoice him this FY.

My question is, if I invoice him this FY and he doesn't pay the invoice until next FY, do I still have to declare the income this financial year, or can I defer the income to next FY?


(P.s I have set up an ABN which appears on the invoice, I have not registered for GST, and the invoice states "GST has not been charged".)

Thanks

 

Usually invoice date not paid date.

 

Was the 'services' provided principally for your personal labour and skill ?

i.e. no professional employees or subcontractors & not from providing stock ?

If so, then the income may be derived on a cash basis (i.e. receipts).

So income year in which you are paid (not the year you issued the invoice or completed the work).

 

Receivables are an add back if they are not paid in the financial year invoiced. Do you account on a cash or accrual basis

 

I'm in agreement with Rob. + There is no GST if you arent registered or required to be registered.

 

Thanks all, in that case, I'll tell him to hold of until next FY to process it