Australians pay Goods and Services Tax (GST) on just about every purchase completed each day. From professional services to food, household furniture, vehicles and technology, GST is applied to anything new that you buy. A rate of 10% is added to the total of all new purchases with the exception of some exemptions such as essential services like health, education services, certain medications and water and sewage, as well as basic food types such as flour, bread and milk.
As a business owner, if you are registered for GST, you are required to submit regular business activity statements to the Australian Taxation Office (ATO). BAS statements help you to report and pay GST, PAYG instalments, PAYG withholding tax and other relevant taxes. As a business owner, it’s crucial that you stay on top of your business activity statements so you always understand the tax health of your company. With accurate and up-to-date data, you can make better decisions regarding the future of your business and avoid penalties from the ATO for not meeting your filing deadlines.
Let’s take a look at a few strategies you can use to stay on top of your BAS statements moving forward.
Use The Right Tools
Modern business accounting software packages can help you to take control of your business finances and reporting requirements. These powerful tools can be integrated seamlessly with your existing systems and can be connected directly with the ATO to make reporting more streamlined. Cloud-based accounting software allows you to access your important financial data 24/7 from any location, meaning you always have the information you need when you need it. What’s more, you can often file your returns directly through the platform itself.
Different accounting software packages offer various features, and at a range of price levels. Spend some time looking at the different options to find a solution that meets your needs and will help you to prepare your BAS statements with ease.
Keep Meticulous Records
To stay on top of your BAS statements, it’s crucial that you keep regular financial records. Failing to record your financial data regularly, can result in a frantic, last-minute scramble to find the information you need when reporting time rolls around. Avoid a stressful situation like this by simply logging your financial data regularly.
If you are using an accounting software system then simply enter the relevant information into the system and let the software do the work for you. Otherwise, find a system that works for you to keep your records organised so you have all of the information you need to complete your BAS statements correctly. Set aside time each day or week to update your financial records and you will be ready when it’s time to submit your reports.
BAS Due Dates
Managing your BAS reporting requirements efficiently means knowing when your reports need to be lodged. This due date for lodging your BAS statement is displayed on the document itself. Depending on your GST turnover, your reporting and payment cycle will differ For example, for those businesses with a GST turnover of less than twenty million dollars, you will need to lodge a report quarterly. Businesses with a GST of more than twenty million dollars, on the other hand, are required to lodge monthly reports. Finally, if you are voluntarily registered for GST and your GST turnover is less than seventy-five thousand dollars or one hundred and fifty thousand dollars for non-profits, you will need to report annually.
Take Steps To Stay On Top Of Your Business Activity Statements
Staying in full control of your business finances and reporting obligations is crucial to the success of your business. Keeping organised records will allow you access to the financial information you need to complete your BAS statements with ease and submit them by the required due date without any stress. With better control of your finances and understanding the financial position of your company at all times, you will be able to make better decisions for the future direction of your company and move towards your business goals with more confidence.
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