Building a GST buffer that survives Friday payroll

Many owners treat GST as a future problem until the due date arrives. Between now and then, Friday payroll and a late supplier invoice quietly spend the same dollars.

In advisory sessions we ask one question first: does GST live in a separate account, or only in a spreadsheet cell? A cell loses every time cash feels tight. A transfer on the day card settlements land — even a partial percentage — survives better because the operating account never sees the full amount as “available.”

For hospitality groups with two tills, we often split the transfer mid-week after the busiest nights clear. For trades collecting deposits, the buffer should ignore deposit inflows that already belong to materials. The habit matters more than the perfect percentage; you can refine the rate after one GST quarter of real numbers.

If your buffer still collapses, look at owner drawings the week before the due date. That pattern shows up more often than a “surprise” IRD bill.