When your company has a bad month, you can find yourself in a pickle with the ATO. Your BAS submission is past due, and it is causing you anxiety. It isn’t the end of the world if your company suffers a setback. If there’s one thing the ATO cares about, it’s that the company succeeds. They realize that life can be tough at times, so you can make up for lost time by paying your overdue BAS statement to the ATO. The bookkeeper services can provide you with the great benefits for your overdue BAS statements.
What Is The ATO Payment Plan?
ATO recognizes the importance of small businesses as a source of jobs and solutions in the city, so they provide a payment plan to assist small businesses in staying afloat. Payment plans from the ATO help your small business gets through tough times by allowing you to work out a payment schedule and handle your tax debt.
The Importance of Maintaining a BAS Log
Your BAS will potentially assist you in keeping track of your company’s finances. You’ll be able to measure your GST and other obligations in your BAS ahead of time if you keep track of your profits and expenditures. You will use this to send reports and payments to the ATO even before the end of the quarter. This is a safe practice to ensure you don’t miss out on something and to prevent legal problems and ATO fines. You can also infer where your company is heading by successfully completing your BAS and focusing on the areas that need the most attention.
Conditions of the Payment Plan
It’s important to understand the ATO’s payment plan conditions before you set up your payment plan.
- Your tax debt will be reduced by all of your deductions and refunds, but they will not replace your mandatory installment plan.
- Once the loan is paid off, a General Interest Charge (GIC) can accrue.
- You have the option to pay off your debt at any time.
- You have the option of making further voluntary payments.
- You must also file your BAS statements and tax returns, as well as settle any related obligations on time.
You can use the ATO’s payment plan estimator to find out how much interest you’ll be paying and how long it will take you to pay off your tax debt. The bookkeepers in Melbourne manage such tasks wisely. This does not; however, guarantees that supercharge debts will not be incurred.
How To Manage Your ATO Payment Plan
Here are six helpful hints for keeping your payment plan on track without going into default.
- Make sure the first payment is made on time. It would be ideal if you could complete this before the deadline. At all times, avoid late payments.
- Plan monthly recurring payments a few days before the due date to ensure you don’t forget.
- Make the payments a few days before the due date and give them time to clear.
- Your subsequent BAS deposits are not covered by your payment plan, so you must pay them in full. If you are unable to do so and want to add an additional BAS to your existing plan, please contact ATO as soon as possible.
- Contact the ATO if you are unable to pay an installment. You can contact them through their online services or by calling them during business hours. Discuss your situation with your lender to see whether you can adjust your payment number or due date. You can also hire a licenced BAS agent to assist you. We will assist you in obtaining a bill extension.
- If you default three times in a row, your credit score will suffer. This will start a phase in which the ATO will ask for more details about your financial status and potential willingness to pay. ATO can contact your bank and withdraw funds from your account without your permission if you reach this stage.
If you follow these suggestions, you’ll be debt-free in no time and bookkeeper plays a crucial role in this. The bookkeeper services can also assist you to manage the bank reconciliations.
But there’s one more thing to keep in mind. Check your account balance (the final sum to pay) via the ATO online services for individuals, myGov for sole traders, and the ATO’s business portal for other organisations before making the final payment.
If your BAS statements are past due and you’d like to set up a payment plan, you can seek the assistance of a licensed bookkeeper service. An expert will assist you in analyzing your business finances so that you can devise a strategy for improving your cash flow and turning your company around.
Our knowledgeable small business bookkeeping services providers will provide you with sound advice. If you need assistance with your BAS filing and ATO payment plan, please contact Reliable Bookkeeping Services. We also assist our clients in recognizing their current financial situation and developing a benefit strategy. We will help you navigate the complexities of bookkeeping so you can concentrate on running and growing your company.
We are available for consultation 24/7. Contact us today and book a free consultation for your bookkeeping needs.
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