If your business is registered for GST, you must declare how much you have earned and paid by preparing and filing a business activity statement (BAS). If you are busy expanding your business and don’t have enough time to prepare and lodge BAS, you can reach out to a registered BAS agent or choose bookkeeper services in Melbourne because many bookkeepers know how to lodge BAS. Before you or your BAS agent prepare a business activity statement for your business, you must know what BAS is and how it works. Let’s get started:
What is Business Activity Statement (BAS)?
Business Activity Statement is how you record and pay PAYG instalments, GST collected, and other relevant taxes. Generally, it is a form you fill in and file with the ATO along with the payment of what you owe them. The ATO uses the information mentioned on the BAS to check out your GST bill or refund. Additionally, it is also used for employee income tax, business income tax, fringe benefits tax, wine equalisation tax, luxury car tax, and fuel tax credits.
What Information Do You Need for BAS?
You must have a record of collected GST on sales and paid on purchases. You don’t need to lodge tax invoices when you file your business activity statement, but you must have them on hand. The ATO may ask to check them later. You may need to provide additional information about your business, its employees, and income because your BAS may be used for other tax reasons. Now, you may be wondering: How to calculate BAS? For this, you need to follow a few steps, such as:
- Choose the right method to complete your BAS
- Identify GST-applicable sales and purchases
- Calculate received and paid GST, plus net GST
- Maintain detailed GST records.
How to Lodge Business Activity Statement?
It’s essential to file your BAS and pay any amounts owed by the due date. You can have various options for filing your BAS and reporting your goods and services tax, PAYG withholding tax, PAYG instalments, and other taxes to the ATO. Here are the most commonly used lodgment options:
- Lodge online
Most businesses that file their own BAS prepare and lodge online. Filing your business activity statement online is an easy way, and you:
- can file at a time when it’s convenient for you
- may get an extra 2 weeks to file and pay your BAS
- may receive a refund faster
- can review your business activity statement before filing and check that the calculated amount equals what you expect to pay or receive.
- Lodge through your tax or BAS agent
A registered tax or BAS agent can file and pay on your behalf. You can also get in touch with small business accountants in Melbourne for BAS lodgment. When you get help from an agent:
- They will check BAS, and reminder messages that you received through their online service
- You can still have permission to access your BAS using online services for business if your agent is handling them on your behalf.
- Lodge by mail
In this method, you must mail your original completed BAS by using the pre-addressed envelope given in your BAS package.
What to Consider When Completing Your BAS?
When completing your BAS, you need to pay attention to a few things, such as:
- Enter accurate dollar amount
- Ensure to enter each invoice one time only
- If you account for GST on a cash basis, your sales and expenses should be within the time period you received or made payments
- Make sure to fill fields which apply to you – enter zero if you have nothing to report
- Don’t forget to double check calculations and figures when doing this manually
- You can always make corrections made on an earlier BAS.
Conclusion
If your business is registered for GST, then you are liable to lodge a business activity statement. If you are unfamiliar with the process involved in BAS lodgment, you can choose a registered BAS agent. By choosing our reliable bookkeeping services, you can be sure that you will have accurate records required for BAS lodgment.