How To Manage Your Business Activity Statement (BAS)

What are Business Activity Statements (BAS)

Businesses registered for GST must prepare a business activity statement (BAS). In Australia, business owners must prepare Business Activity Statements (BAS).

It is a legal requirement for businesses to submit their BAS statements to the Australian Taxation Office (ATO). It is a registered business entities use to lodge and pay their tax liabilities all at once.

Business owners should include in their BAS tax obligations of a wide range of charges, including

• Goods and services tax (GST)
• Income tax installments paid as you go (PAYG)
• Luxury car tax (LCT)
• Wine equalization tax (WET)
• Installment of fringe benefits tax (FBT)
• Tax withheld on a pay-as-you-go basis
• Credits for fuel taxes 

You’ll need to track how much GST you collected on transactions and how much you paid on purchases. When you submit your BAS, you will not be required to submit charge invoices, but you should keep them on hand. ATO may eventually request them.

Depending on the use of your BAS, you may need to provide additional information about the company, its employees, and its pay. 

Tips for managing BAS return

Routinely minding your organization’s BAS can assist you with keeping steady over its tax prerequisites.

What are some ways to maintain steady performance in BAS?

• Accounting software

Putting resources into accounting software can save you significant investment. It likewise assists a business with protecting duplicate records for documenting tax; a few frameworks even permit you to register returns through the actual program.

One time each week, invest some energy going through your funds. Fair accounting software will want to incorporate your business accounts, catching all that from check card exchanges to online installments. Using this information, you can ensure all cash installments, GST, and BAS categories are properly recorded.

It is possible to eliminate the accounting issue and keep your BAS up to date with accounting software.

• Utilize proficient tax specialists

Using a tax agent does not guarantee you will never miss a BAS deadline or face late-recording penalties. Some can also handle your BAS, freeing up a substantial amount of time.

By keeping track of the BAS for you, they can also provide feedback on how the business is running and advise on the best way to set up your GST representative survey. If you want to learn more about the most effective way to create and manage your business, look for Certified Bookkeepers, also business development experts.

What types of businesses are required to file BAS?

BAS forms are required for businesses that register to pay Goods and Services Tax (GST).

So assuming your business has enlisted itself for GST and has a yearly pay of $75,000 or more, it is imperative that your business has lodged a Business Activity Statement or BAS and submitted it to the ATO by the due date.

However, on the off chance that your business is a non-profit organization, the criteria for lodging and presenting a BAS is a yearly pay of $150,000. If your business has a lower payment than these predefined sums, then, at that point, enlisting for GST and submitting BAS isn’t essential or mandatory.

As most business owners don’t stir things up around running, enrolling for GST in the beginning phase of your business will be optional. However, once you start seeing a satisfying turnover, it is a lawful prerequisite to register within 21 days of your GST turnover exceeding the criteria.

The ATO will notify you automatically when a BAS needs to be lodged when you register for an Australian Business Number (ABN) and GST.

What is the due date for my BAS return?

Your organization’s yearly turnover will decide the Business Activity Statement filling recurrence.

When you lodge and file your BAS return, it appears on your business activity statement (BAS).

Your GST reporting and installment cycle will be one of the following.

Quarterly

 If your GST turnover is under $20 million, in quarter –

• 1 (July-September) BAS is due on 28 October.
• 2 (October-December) is scheduled for 28 February.
• 3 (January-March) is expected on 28 April.
• 4 (April-June) is scheduled for 28 July.

Monthly

If your GST turnover is $20 million or more

• The due date to lodge and pay your month-to-month BAS is the 21st day of the month following the finish of the taxable period. The July monthly financial report is due on August 21.

Annually

If you are willfully enrolled in GST and your GST turnover is under $75,000 ($150,000 for non-profits)

• The due date to lodge and pay your yearly GST return is 31 October.
• Tax returns are due on February 28 following the end of the tax year.

You can lodge your business activity statement or work with a registered tax agent Perth or BAS agent Perth.

What if I submit my BAS late?

If you need help lodging your business activity statement by the due date, you should contact the ATO as soon as possible. They can work with you to set up a payment plan that lets you pay in installments rather than all at once. You still need to lodge your activity statement on time, even if you still need to pay by the due date.

If you’re late in lodging your BAS, fines start at $210 for every 28-day time frame overdue.

If you made an error in reporting your GST and fuel tax credit, you can correct your next BAS.

How to lodge your BAS

Business owners have various options when it comes to lodging their activity statements. Most businesses who install their own BAS do it on the web, which gives them an additional two weeks to accommodate and pay.

If you lodge your BAS on the web(online), you can utilize the following:

• The MyGov portal: If you’re an individual or sole merchant, you can lodge, view, and re-examine your activity statements using your MyGov account. Sign in at www.my.gov.au, then select ‘tax’ and ‘activity statements’ from the menu.
• The ATO’s Business Portal: If you’re not an individual or sole merchant, you can deal with your business tax undertakings here.
• Online accounting software: Online accounting software like Xero and MYOB allows you to lodge your BAS directly from your accounting portal. For BAS lodgement, your accounting software must support Standard Business Reporting (SBR).

Lodge through your tax or BAS agent

If you have an enrolled tax or BAS agent Perth, they can lodge, vary, and pay on your behalf through their favoured electronic channel.

At the point when you use an agent:

• They can view BAS and reminder messages sent to you via their online service.
• You can still access your BAS through myGov, even if your agent manages them on your behalf.

To change your reporting and installment cycle right off the bat in the lodging period (for instance, in the preceding month of the quarter or toward the start of the financial year), you can begin the new cycle straight away. Any other way, the new process will produce results from the very outset of the next quarter or year.

How to manage BAS return

Dealing with your BAS is a non-debatable piece of maintaining a business. Numerous businesses decide to pay a clerk, which diminishes or eliminates the business owner’s responsibility for punishments and fines.

Here are how effectively manage your activity statement toward getting ready and lodging a BAS with the ATO:

• Lodging your BAS is only a daunting task if you need more time with the documentation of your business’ pay and costs over the earlier months. To make tax announcements as seamless as possible, documentation is vital.
• Begin by investigating your financial records and ensuring that your bank statements match the information you’re giving to the ATO. This additionally incorporates any buys, cash costs, and applicable outstanding assets.
• Regularly practice it to gather receipts and invoices for business exchanges and receipts and invoices for any money exchanges. Better even, regardless of how little your independent venture: Utilize separate financial balances for private and business purposes
• You’ll likewise have to monitor the amount of GST you’re gathering on deals and the amount you have spent on buys. The ATO may request tax invoices if you fail to submit them with your BAS.
• For other tax purposes, you should include additional information about your business and its employees in your BAS.
• Assuming that you’re utilizing Xero, a web-based bookkeeping program, you ought to run the Bank Compromise Outline to check to accept your natural bank balance and the equilibrium of the ledger in Xero match. If your compensations don’t coordinate, run the report to check for missing, erased, or copied exchanges.
• Whenever you have finished the BAS, stay up with the latest with new information. Alternatively, you can mail your BAS or document online through the ATO portal, or your tax specialist file it for you.
• Ensure you pay what you owe on time, or on the other hand, make course of action with the ATO for an installment plan. 

Can I correct a mistake in my BAS?

BASs that are currently held up due to errors can be corrected on your next BAS. Conditions will apply contingent upon whether you’ve made a credit or charge error. The ATO site has more information about fixing BAS missteps or adapting.

Whether you present your BAS month-to-month, quarterly or yearly, staying up with the latest ought to be a priority. Diarise to finish your activity statement seven days before the due date to guarantee you have sufficient opportunity to submit it on time. (While it’s anything but a significantly extended task, numerous business proprietors will verify that it’s an enticing position to push to the next day’s plan for the day!)

To change your reporting and installment cycle right off the bat in the lodging period. For instance, in the preceding month of the quarter or toward the start of the financial year. For the most part, begin the new cycle straight away. Any other way, the new process will produce results from the very outset of the next quarter or year.