The business activity statement (BAS) is integral to all businesses in Australia. If your company has an ABN and is registered for Goods and Services Tax (GST) credits, you automatically receive BAS.
The Australian Taxation Office (ATO) takes precision and deadlines seriously; as the owner, it is within your prime responsibilities to complete and submit your BAS accurately and on time. Many firmstypically hire ATO compliance services to keep them on track with regulations.
It can be daunting to manage your business activity statements. Fortunately, you don’t have to stay in the dark. Below, we listed some tips to help maintain the accuracy of your business activity statements.
Record All Transactions
It is required to record every transaction your business needs to create a BAS. Your accounting data should be identical toyour bank details, down to the smallest information. These include the purchase, expense, credit, and outstanding funds.
Be sure to check for missing information. If you spot any, fill them with the date, transacted amount, GST, and purpose of the transaction.Make it a habit to update the logs weekly.
Prepare All of the Necessary Information
Once you recorded all of your transactions, be ready to consolidate. Your business transactions, financial records, and accounts must be collected and checked for accuracy and timeliness.
Remember, everything you input in your BAS will directly affect your PAYG, GST, and other taxes, so don’t forget to review all the information provided. Fill in missing entries and correct errors if there are any.
Categorise Accounts According to BAS
Beginner business owners often forget to sort their accounts prior to the BAS reporting. The lack of proper organisation creates confusion and increases the risk of inaccuracies and missing entries.
The key tomanaging your business activity statements easier is to organise your accounts according to the categories in the form. Set up your accounting software to BAS’s categories for quicker reporting.
As soon as you receive a transaction, record them and classify them immediately to save time. Always think one step ahead, and you’ll see how less intimidating managing and submitting your BAS would be.
Know the BAS Lodgement Dates
Depending on your business structure and cash flow rate, your company may need to file BAS monthly, quarterly, or annually.
Understand when your lodgement dates are due to avoid working on your business activity statements at the last minute. Delaying your submission is one way to upset the ATO, a costly mistakeyour business does not want to experience.
Seek Professional Aid
Small business owners may not have the resources to record and manage every account needed to complete their business activity statements. Even medium to large enterprises find working effectively on their BAS challenging, so we recommend hiring assistance.
Working with experts means you can worry less about your taxes and focus on core responsibilities. You don’t have to struggle alone; get in touch with Pacific Accounting to ensure you remain compliant with the demands of the ATO.