If you own a small business in Australia, you have to maintain a time-specific BAS record. BAS stands for business activity statement, and the Australian Tax Office regulates its submission. If your business is registered for the GST, you should timely file the BAS. Otherwise, you may have to pay penalties. Here in this article, we have shared the best tips on how to prepare BAS for small businesses in Australia.
You should take a look at the BAS preparation checklist before you lodge it. All the information should be accurate. Various taxes included in the BAS are GST (Goods and Services Tax), PAYGW (Pay As You Go Withholding), PAYGI (Pay As You Go Instalments), WET (Wine Equalisation Tax), FBT (Fringe Benefits Tax), LCT (Luxury Car Tax), Instalment Notice (GST and PAYG instalments), and Fuel Tax Credits.
Here are some of the best tips on how to preparing BAS and make the BAS lodgement procedure easy for you.
Once you know the checklist, you should start organizing the necessary invoices and receipts. The papers should include accurate information about the type of transaction, date, GST, and description. If your accounts are periodically updated, the job will be smoother. So, it is advised to use accounting software.
Based on specific categories, you can include different transactions that can help you later. Here also, you can use relevant software to maintain accuracy.
Once you have correctly filled in all the necessary information, you can make the submission offline, online or via a BAS agent. For lodgment, you should know the specific dates of lodgment to submit it online, thus avoiding the penalty. For any confusion, you can get in touch with the ATO.
After Submitting, You Should Keep A Hard Or Digital Copy Of The Document For Both Ato Requirements And Individual Use. It Is Better To Keep The Copy For Five Years.
Once you know all the basic procedures of how to prepare BAS, you can file it pretty easily.
If your business is at the early stage of development, you will not need to register it for the GST. But, if the annual GST turnover crosses the threshold value, i.e. $75000, you have to apply for the registration within 21 days. You can file it using software, yourself or through a hired BAS agent. Hiring a BAS agent can offer you the following benefits.
As your BAS agent will represent you in front of the Tax Office, the taxation department will not hold you as liable as a customer if the agent makes any mistake. It is because of the safe harbour clauses. On the other hand, you have to pay penalties for any fault in lodging.
Accounting agents are controlled by the TPB or the Tax Practitioners Board. They constantly check whether the agents are maintaining a specific code of conduct. Thus, you will get your job done with integrity, honesty, fairness and knowledge.
BAS accountant needs to meet specific registration requirements like finishing higher education. An additional requirement is pursuing a BAS or GST course. Before registration, one should have experience of at least 1400 work hours for four years.
While working, the BAS agents need to finish their education. For the TPC registration renewal, they should complete CPE activities for 45 hours, which must be performed every three years. Under these activities, they attend tertiary courses, give presentations, write research papers, and conduct workshops.
When a BAS accountant files the statement on your behalf, they can get the lodgement date extension. In case of self-lodgement, you will need to pay penalties if you cannot submit it within the deadline.
For proper maintenance of financial records, a BAS agent can be a suitable option. Here we discuss the factors that you have to consider while selecting a BAS agent.
Once you meet the agent, you should first discuss the qualifications and know their area of interest. Then, you should tell your accounting needs and check how qualified they are. The higher the level of qualification, the more enriched the knowledge base.
Then, you should know what services they will provide. You should check whether they provide regular services or have any unique factors. Most importantly, you have to check whether they match your requirements.
One of the most crucial deciding factors is an agent’s reputation or a company. You should check the client bases if there is any similarity. For specific information, you should look into their website and the customer reviews. If the client base is varied, it is an indication of their versatile services.
Next, you should negotiate the fees. If you find that they provide top-class services at an affordable expense, you have chosen the best option. Regarding the price, we recommend comparing the rates of different agencies.
While talking terms, you have to know how they have planned the whole work procedure. Once you know the entire process, you will get an estimate of the timeframe. Regarding work demands, you should be very clear on your part. And, you should not hire someone if you are not convinced.
The location of an accountant is also crucial. If the accountant’s location is near you, it will be a significant advantage. They can give you location-specific information, rules and regulations.
For better communication, trust and confidence, you should hire an agent who can take all the criticism in a true spirit.
This post may supply valuable information on how to preparing BAS in Australia for small businesses. You can apply the above-mentioned tips to prepare your BAS in an easier way and save time.
Two of the essential aspects of timely BAS lodgement and successful running a business are research and communication. If you still need any help on how to prepare BAS from an appropriate BAS agent in Perth, then Palladium Financial Group is here to assist you.