If you are running a business in Australia, chances are that you are very aware of BAS statements. As a business registered for paying goods and services tax (GST), you are required to submit a business activity statement (or BAS). GST registration is only mandatory when your company’s gross income is equal to or exceeds $75,000. Essentially, the BAS statement is to aid you in reporting and paying GST, pay as you go instalments and withholding tax, and other taxes as well.
Taxes can be a headache for even the savviest accountant. However, by taking the time to understand the essentials regarding how to keep your taxes up to date with the help of BAS statements will help to keep your records up-to-date and accurate.
Continue reading to learn more about keeping your taxes up to date with the help of BAS statements.
Keeping Up With The Law
Tax laws are perpetually changing and so one of the most important ways of keeping your taxes up to date is to remain aware of new and pending changes to the tax code. Knowing how these will affect both you and your company is paramount to financial planning. It is vital to get this information directly from the source; that is, directly from the ATO. Having an in-house accountant can certainly assist in this regard as can updating your bookkeeping and payroll software.
Completing The BAS
As a case-in-point, BAS statements were introduced in 2000 as part of a major tax law reform. Paying GST is usually the primary reason why businesses must file a BAS. Completing the BAS can still be a headache for some, but completing it is vital to ensuring that your business’s taxes are up to date.
If you are completely new to BAS, contact the ATO for more information. Fortunately, smaller businesses can fill in a streamlined version of the BAS which requires the imputation of less information. Conveniently, you can submit your business activity statement either electronically or by post. Be sure to submit the BAS on time to avoid any penalties. Due dates will vary depending on whether you report your information quarterly or monthly.
If you are simply struggling with completing a BAS, there are several pointers to keep in mind. For one, make sure that your company receives its forms at the appropriate time (monthly/quarterly) and make sure to call into the ATO if you do not receive them. The information required on a BAS will depend on how your business is registered and whether you complete monthly or quarterly statements. As outlined on the ATO website, it is vital to square the figures you have in your records with the BAS figures. Also, make sure to check that all purchases and sales are specified in the correct time period. Verifying all of this information is vital to keeping your taxes up to date.
Stay Up To Date
In essence, staying up to date with your taxes simply requires good organizational skills, as well as some proactive knowledge of incoming tax rules. If you keep good documentation of your company’s records of sales, fees, expenses, and wages. Be sure to keep any tax invoices and records for the past five years, in case either you or the ATO need to review these. Finally, be aware of whether or not the products you sell are subject to GST. If they are, keep earmarked money set aside so that this GST may be repaid when it is due so that you don’t run into any surprises down the line.
