[Hardak]

Running few machines for 18 yrs from gcode to actual software, to this usb cnc software ...after finally getting it to funksion the way i want it ,couple test circles of one inch dia. Showed the bit is on center no matter where i put the offset the tool remains in same position which setting am i missing to be able to cut inside and outside of my circles line

[PlanetCNC]

To obtain correct dimensions of your cutout pieces you would need to consider tool diameter.
This is the best to be done in CAM software (which generates proper g-code) or if you use CAD sw, use offset of tool radius already when designing.