Every business owner has the desire to run their business in such a manner so that staying on the pinnacle of the ATO reporting obligations become easy. If you are one of them, start preparing you BAS. It is a tax reporting requirement for Australian businesses issued by ATO or Australian Taxation Office. Its main purpose is to report and pay ATO for PAYG Instalments, PAYG Withholding, Goods and Service Taxes, and other tax obligations.
You can complete and lodge your Business Activity Statements on a monthly, quarterly, or annual basis. The frequency of lodging it is generally dependent on the size of your business. If you are still confused about the right time to lodge a BAS, start looking for a renowned company who can offer Business Activity Statement (BAS) Services within your budget. You can also ask them to prepare your BAS lodging so that you can have complete peace of mind.
Willing to Get Started With Your BAS? 4 Easy Steps for You
- Check Records
If you are trying a DIY, it is entirely your responsibility to ensure that all your bank accounts are correct as they are a reflection of your accounting records. The accuracy of the available information can be checked by using those advanced accounting software, gathering invoices and receipts, and completing regular bank reconciliation. The task can be completed easier and faster if you take the aid of a financial advisor.
- Data Input
Data entry is one of the important steps of BAS lodging. Though you might think that data entry is an easy task, it is actually not so. Instead of manual data entry, approaching a company who uses cloud accounting tools is more advisable as the former is more susceptible to errors. When you use tools like MYOB or Xero, the data entered is more accurate and provide a timely solution.
- Calculate GST
If you want your GST to be accurately calculated for all purchases and sales, opting for a cloud accounting package is a must. The package will also make the process less stressful for you as you don’t have to undergo those manual calculations and the possibility of making errors is reduced. Your financial data will be assembled into an easy to interpret report which you can easily submit to the ATO.
- Lodge Your Statements
This is the final step and you can generally do it in two ways. Either mail a hard copy of the Business Activity Statement to the ATO or lodge it electronically through their portal. If reports are to be believed, it will soon become compulsory for all business owners in Australia to lodge their BAS electronically.
A Quick Tip!
Never delay lodging your Business Activity Statement as you might have to pay a late-fee of around $110 for every 28 day period that you are late. Now, lodging and paying for BAS has become easier as you can pay using a credit card. So, start preparing your BAS or approach a reliable company who can offer the service within your budget!