Simple mistakes while filing business activity statements can cost money and time. Therefore, you must know what mistakes you should avoid when lodging a business activity statement. If you are not familiar with the preparation and lodgment process of a business activity statement, then it will become difficult for you to lodge BAS.
What Mistakes to Avoid When Filing BAS?
Every month or every quarter, based on the turnover of your business, you must file a BAS and send this to the ATO. The BAS is given by the tax office and the aim is to help businesses to pay all their tax liabilities on a single form. The primary benefit is that it simplifies the tax lodgment process for several businesses. A typical BAS will cover several tax details such as fuel tax credits, goods and services tax, the PAYG tax withheld, fringe benefit tax instalments, and PAYG income tax instalments among others.
Making errors on your BAS can lead to costly penalties and delays. If you are a business registered for GST and PAYG withholding, you should prepare a business activity statement to meet your tax obligations. To avoid these errors, it is essential to know what to avoid when lodging your BAS.
• Inaccurate Business Records
Recording inaccurate business records is one of the most common mistakes that many businesses make when preparing BAS. It is crucial to maintain detailed records of all your business transactions, including expenses, sales, and GST paid. Without correct business records, it will be difficult to complete your BAS accurately, and you may have to pay more tax than necessary. Ensure to keep all invoices and receipts organised and up-to-date to avoid this mistake. If you find it difficult to manage your business records, you can choose bookkeeping for small businesses.
• Not Including All Taxable Purchases and Sales
Another mistake that you should avoid is not including all taxable purchases and sales. It is crucial to include all sales and purchases of your business to your BAS, even if they are not liable to GST. It includes sales and purchases made using online platforms. If you fail to include all taxable sales and purchases, then it can lead to penalties from the ATO. Ensure to keep accurate records and cross-check all amounts before submitting your BAS.
• Not Claiming All Eligible GST Credits
One of the most common errors that many businesses make is not claiming all eligible GST credits. It can happen when you don’t maintain accurate records of your business expenses or when you don’t know what expenses are liable for GST credits. It is important to keep detailed records of all expenses of a business and consult with a professional tax accountant in Melbourne if you are not sure about what expenses are liable for GST credits.
• Late or Not Submitting Your BAS
If you don’t submit your business activity statement on time, then it can lead to interest charges and penalties. It is crucial to mark the due date and set reminders to make sure you don’t miss the deadline. If you struggle to complete your BAS, consider hiring a professional accountant or bookkeeper to help you stay on track. Don’t forget that late or not submitting your BAS can lead to serious consequences for your business.
• Not Receiving Professional Advice When Required
Another mistake that many business owners make when lodging their business activity statement is not receiving help from a professional bookkeeper when required. Many of you may think that hiring a bookkeeper could add more expenses, but it is not true because it can actually save you money and time in the long run. Bookkeepers can help ensure that your BAS is correct and submitted on time and offer valuable insights into your business finances. Therefore, you should reach reliable bookkeepers for help when you need it.
Conclusion
In a nutshell, lodging your business activity statement accurately is important for the success of your business. To avoid making common mistakes, it is important to maintain your records accurately, submit BAS on time, and claim all eligible GST credits. You can seek help from a reliable bookkeeper and for this, you can reach a Reliable Bookkeeping Services provider.