How to assign categories and allocate GST with ANNA

If accounting software makes your head spin, don’t worry – you’re not alone. In traditional accounting systems, a ‘chart of accounts’ determines how each transaction is treated for GST, income tax or other obligations. Accountants usually assign these ‘accounts’ manually to every transaction.

ANNA makes this process much simpler. Instead of a chart of accounts, ANNA uses smart scanning technology and categorisation. Upload your receipts and ANNA can help identify GST and categorise your transaction – just like a complex accounting system, but in a more user-friendly way. 

Quick Summary

• User-friendly bookkeeping: Even without accounting experience, ANNA keeps your books organised, reduces manual work, and ensures GST is tracked correctly.
• GST made simple: ANNA identifies GST amounts for purchases and sales, helping you claim GST credits and stay compliant.
• Learning system: The more you use it, the better ANNA gets at suggesting categories for recurring transactions and suppliers.

How categorisation works in ANNA

Whenever you make a transaction, ANNA offers a list of categories to choose from. Once you select a category for a particular transaction, ANNA starts to learn from your choices. Over time, ANNA may begin to recognise similar transactions – for example, a payment to the same supplier – and suggest the same category. If you regularly purchase stock from Pens Ltd, ANNA will start to remember this supplier and suggest categorising future payments to them as ‘Stock’.

Categorising your transactions also helps separate business income from expenses, giving you a clear picture of your finances and simplifying tax reporting.

Why categories matter for GST reporting

If your business is registered for GST, you can get back the GST included in the price of things you buy for your business. This is called a GST credit or input tax credit.

In general, you can claim a GST credit if:

Tips to keep it simple:

In Australia, the GST rate is 10% for most goods and services. That means if a price already includes GST, the GST portion is 1/11 of the total price. 

For more information on whether your purchase includes GST, how to claim GST credits, and bookkeeping tips visit this ATO website and this ATO’s bookkeeping guide.

How ANNA helps with GST

We’re adding BAS and GST support to ANNA to help you manage your taxes more easily, with the following features coming soon.

The categories you assign in ANNA do more than just organise your transactions – they help calculate your Business Activity Statement (BAS) accurately. 

When you attach receipts or invoices to your transactions, ANNA can figure out:

This is exactly what the ATO expects: only GST paid on business purchases with valid documentation can be claimed, and only GST collected on sales is included in your BAS.

In simple terms: the more accurately you categorise your transactions and attach supporting evidence, the easier it is for ANNA to do the heavy lifting. Ensuring your BAS is correct, your GST credits are claimed properly and your bookkeeping stays compliant.

ANNA currently estimates GST on a cash basis, making it simpler to track your GST obligations. It also supports the simpler BAS reporting method, designed to make BAS reporting straightforward for small businesses.

Categories for incoming transactions

Whenever money comes into your business account, you’ll want to assign it to one of the Incoming Category Groups. These groups help you track where your business income is coming from and make your reporting clearer: 

Categories for outgoing transactions

When money goes out of your business account, you can choose from the Outgoing Category Groups. These groups help you understand where your business is spending and what types of costs you’re incurring:

Each group has more specific categories underneath it. For example:

You can check out the full list of categories here or directly from your ANNA business dashboard.

Not sure which category to choose?

We get it – not every transaction fits neatly into one category. But don’t worry, ANNA makes it easy to stay organised.

If you can’t find a category that perfectly matches your transaction:

Tip: Whenever possible, try to keep each type of transaction separate. This makes it easier to assign them to the correct category and reduces the need for adjustments later.

Scenario 1: Mixed expenses
Sometimes a transaction covers more than one type of expense. For example, you might pay $50 for both office supplies and a business lunch. In this case, pick the category that makes up the larger portion (maybe ‘Workspace costs’) and add a note like: ‘Includes business lunch for client meetings with Kevin’. This helps when you need to make manual adjustments during your BAS or at period-end review.

Scenario 2: Capital contribution

If you or a shareholder puts money into the company, for example buying newly issued shares, you can categorise it as ‘Director’s money in’ for now and add a note such as ‘Keti’s capital contribution’. This makes it easier to track shareholder contributions and ensures your year-end review and adjustments are accurate.

Scenario 3: Rental income received with bond

Sometimes you might receive a combined payment, for example $500 for rent and $2,000 for a rental bond, totaling $2,500. In this case, you could categorise the main bond portion under ‘Other loans’ and add a note like: ‘Includes rent income $500’. This clearly shows which part counts as income and which should be tracked separately, making period-end adjustments easier. (Tip: rent for residential property is not subject to GST.)

Why you can’t create your own categories

ANNA doesn’t allow users to create custom categories. The reason is simple: it helps keep your accounts and bookkeeping straightforward, avoiding confusion or errors. If you want to track a specific type of transaction, you can always add a note to capture the detail. Adding notes like these keeps your transactions organised and makes reviewing your accounts much simpler. If you’re ever unsure, ANNA’s support is always ready to guide you to the most suitable category.

Tips for tidy books

Got questions? Reach out to us via app chat. You can also find more info about bookkeeping guides on this ATO website and our blog about GST and BAS.

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