If you run a business in Australia, you might have heard of the Business Activity Statement (BAS). However, for many business owners, the BAS lodgment process have always remained confusing and last-minute scrambling. Professional bookkeepers work with numerous clients to streamline this process. They believe that every business owner must know the basics of BAS obligations. By accessing Melbourne bookkeeping services, you can ensure you know the basics of BAS.
What is a BAS and Why is It Important?
You are required to file a business activity statement (BAS) if your business is registered for GST. With your BAS, you can report and pay your:
- Goods and Services Tax (GST)
- Pay As You Go (PAYG) instalments
- PAYG withholding tax
- Other taxes.
These are usually lodged monthly or quarterly, based on the size and structure of your business. Accurate BAS reporting is an important compliance requirement and also shows your business’s financial health.
You will receive a BAS from the ATO when it is time to lodge. You will receive a BAS when you register for an Australian Business Number (ABN) and GST.
What Should You Know About BAS?
As a business owner, you may have to deal with various business tasks, responsible for business growth. However, many business owners often avoid understanding BAS obligations, which can lead to various issues related to BAS. Here’s what every bookkeeper wishes you should know:
- BAS is a shared responsibility
While a tax or BAS agent is primarily responsible for filing your BAS accurately, the correct BAS lodgment depends on the quality of the information provided. This simply means:
- Keeping invoices and receipts organised
- Ensuring payroll records are accurate and complete
- Communicating clearly with your bookkeeper about any changes to your business.
Bookkeepers will not only help you prepare records for BAS, but they also help you prepare a bank reconciliation statement, financial statements, and accurate record-keeping.
- Timeliness is crucial
On-time BAS lodgment is crucial, not just for compliance but for maintaining a smooth financial workflow. Lodging BAS late can lead to interest charges, penalties, and unwanted attention from the ATO. More importantly, late lodgments are often caused by incomplete records or slow responses to doubts or queries from bookkeepers. When a bookkeeper asks for clarification or supporting documents, it’s essential to respond promptly to avoid misunderstanding and ensure your BAS is submitted on time and accurately. Accurate record-keeping and timely communication are crucial for maintaining a compliant and stress-free business. You can also seek help from accountants near you by searching online for ‘tax accountant for small business near me’. They can ensure that you have lodged BAS on time with accurate information.
- A bookkeeper is your financial guide
Bookkeepers are trained to understand financial data, identify compliance risks, and suggest GST record-keeping requirements. They also help in applying the right tax codes, reconciling bank feeds, and preparing documentation for an ATO audit.
How Can You Make BAS Easier?
Here are practical steps you need to follow to streamline your BAS process:
- Use accounting software: Tools such as QuickBooks, MYOB, or Xero can automate GST calculations and produce BAS reports. Professional bookkeepers use accounting software to make BAS easier.
- Review and update records: Bookkeepers ensure to review and update your records. This practice can reduce last-minute stress and enhance accuracy.
- Answer your bookkeeper promptly: If a bookkeeper asks you for documents or clarification, make sure to respond quickly. Delays can lead to several issues and could slow down the entire process.
- Understand your obligations: Understanding your BAS obligations is crucial for maintaining a financially stable business. You should maintain accurate records, submit accurate information, and file on time. BAS agents help you prepare and lodge BAS on your behalf, but they need your support to do so. This understanding influences you to take control of your business’s financial condition.
Conclusion
Understanding your BAS obligations is not just about business compliance, it’s about making your business financially stable. With reliable bookkeeping services, you can prepare and lodge BAS accurately and on-time. If you are not feeling confident about BAS lodgment, you can get in touch with us.