Why Does A Business Need To Lodge BAS Return?

Whether one is a current or aspiring business owner, tax-related questions could cause many to have sleepless nights. The Business Activity Statement (BAS) is sometimes at the centre of concerns. As a small business owner, one is in good company. There were over 2.3 million small businesses registered in Australia in June 2018. 

If this is the first entrepreneurial venture of a small business, many things must be learned. One can learn things from paperwork to acronyms. There are more things in a business than just generating income to pay bills and save money for the next vacation.  

What Role Is Played By BAS In The Success Of A Small Business? 

Business Activity Statement is a record that can be completed by lodging a tax return and sending it to the ATO. But one requires to lodge a BAS when they have registered for the GST tax. One can register for GST if their business expects a gross income of $75,000 or more (excluding 10% GST). 

• Usually, as business owners do not make great profits initially. It might not be important to register for GST in the early stages of the business. However, once one starts witnessing a satisfying turnover. It is legally required to register within 21 days of the GST turnover exceeding the threshold. 
• When one registers for an ABN and GST, the Australian Taxation Office (ATO) can inform an owner when a BAS has to be lodged. 
• A big part of BAS is directly linked to the GST. When one completes a BAS lodgement, they report the goods and services tax amount they have collected on the minus, excluding anything paid on the purchases. The only difference is the refund and what one owes to the ATO. 

Read More:- Business Tax Planning Tips To Maximize Your Return

Tax Benefits Of A Small Business 

Being one’s boss is one of the advantages of running a small business. One can also take advantage of additional tax credits and deductions to support a small business owner. Some examples are reduced educational costs, home repairs and travel expenses. 

There is only a small requirement of a small business owner, i.e. they need to have proper records showing expenses related to business operation. BAS agents in Perth can help keep track of all costs, transactions, generated incomes and produce financial statements. 

How To Lodge A Small Business BAS Return

The ATO helps make the process of lodging BAS relatively easier, but one still needs to do more work. But one can also lodge a BAS online in a few steps. One can either submit the statement using online accounting software from the ATO’s online business portal or having a registered BAS agent. The agent can also help the owner in gaining maximum BAS return.  

Information Needed To Get Ready

Some of the basic steps to prepare and lodge a BAS return with the ATO are: 

•  One needs to start by closely looking at financial records and making sure all the bank statements match the information passed on to the ATO. This could also include purchases, relevant outstanding funds and cash expenses. 
• One needs to make a habit of collecting receipts and invoices for business transactions and invoices for other cash transactions. It does not matter how small the business is; one needs to use separate bank accounts for private and business purposes. 
• One has to track how much GST they are collecting on sales and how much they have spent on purchases. One does not need to submit tax invoices while lodging the BAS. But they must be kept ready if the ATO asks them later. 
• As BAS return can be used for other tax reasons, one needs to provide more information about the business, income and employees.  
• If an individual uses Xero accounting software. They need to run the Bank Reconciliation Summary to check the bank balance and balance of the Xero match bank account. If the balances do not match, one needs to run the reports for deleted, missing or duplicate transactions. 
• Once the BAS return is completed, one needs to keep the records updated with new information. One can choose to mail a hard copy to the ATO or file BAS online through the ATO portal. 
• People need to make sure they pay what they owe on time; one should also make arrangements with the ATO for a payment plan. 

Read More:- Key Points You Should Know When Preparing BAS!

BAS Due Dates To Keep In Mind

One needs to lodge and pay taxes timely. The date and procedure of paying the tax are displayed in the business activity statement. If the due date to pay tax falls on weekends or public holidays, one must wait until the next business day to lodge and pay. Using the ATO application, one needs to set calendar reminders for lodgement key dates. A tax agent can help a business owner get maximum tax returns in Perth. 

How Can Tax Return Perth Help?

Tax Return Perth has been helping many business owners with affordable tax packages, giving all business owners peace of mind knowing professionals support them. If a business owner struggles with figures and needs a tax agent in Perth, they could contact Tax Return Perth.