Small business owners who get hands-on with their bookkeeping will know all about Business Activity Statements (BAS). They’re like a regular check-in with the ATO, and you get to tell 'em all about your sales, purchases, and any other tax-related info. Basically, you'll be reporting and paying your goods and services tax (GST), pay-as-you-go (PAYG) withholding, and fringe benefits tax (FBT) – all the tax acronyms! – all in one neat package.
Now, we know that dealing with taxes can be a snooze fest, but it's important to keep on top of your BAS lodgements. You don't want the tax man breathing down your neck with penalties and interest charges! The good news is, you only need to do this quarterly or monthly, depending on your business size and structure.
As a business owner, preparing and lodging your BAS can be a time-consuming and stressful task. But never fear! There are ways to make it easier and less of a time-muncher.
Top tips to help you prepare your BAS:
1. Keep accurate records
Trust us; it's important to keep accurate and up-to-date records of all your financial transactions throughout the year. This will make it easier to prepare your BAS, ‘cause you won't have to spend time trying to find and reconcile missing information.
2. Manage income tax provisions
Income tax provisions are basically your best guess at how much income tax you'll owe for a financial year. To manage them, stay up-to-date on tax laws, estimate your taxable income accurately, plan for your tax liability, and review and update your provisions regularly.
That way, you're prepared to meet your tax obligations and avoid any surprises come tax time. When it comes to preparing a BAS, these provisions play a role in making sure your financial reporting is accurate and up-to-date.
3. Use software
There are a number of accounting software programs available that can help you prepare and book your BAS. These programs will automatically calculate your GST and other liabilities, saving you time and reducing the risk of errors. Working with a bookkeeper savvy in the best software and integrations will save you a lot of time and stress.
4. Stay organised
Keep all your invoices and receipts in a safe and organised place. This will make it easier to find the information you need when it comes time to prepare your BAS.
5. Plan ahead
Don't wait until the last minute to start preparing your BAS. Give yourself enough time to gather all the information you need and to book your BAS accurately. As you’d likely know, the due date to lodge and pay your monthly BAS is the 21st day of the month following the end of the taxable period. For example, a July monthly BAS is due on 21 August.
6. Seek help from an expert
If you’re not confident in preparing your BAS, consider seeking help from an accountant or bookkeeper . They'll be able to guide you through the process, making sure you book your BAS correctly and on time.
By following these tips, you can reduce the stress and time involved in preparing your BAS and ensure that your business stays compliant with tax laws. BAS is your chance to show the tax man what you've got going on, and keep everything above board. And if you need any help or advice, just give us a shout! Our experienced accountants and bookkeepers are always here to help you keep your finances in tip-top shape.
