What is a Business Activity Statement (BAS)?
When you’re running a business that is registered for Goods and Services Tax (GST), you’ll have to complete regular reporting to the Australian Tax Office (ATO). This regular reporting is called a Business Activity Statement, or BAS. You need to report tax activity on your BAS, including GST, Pay As You Go (PAYG) instalments, PAYG withholding tax, and other taxes.
You can choose to report your BAS annually, quarterly, or monthly but whichever your choice, you’ll need to keep to your due dates so you don’t incur fines or fees. The ATO will send you notification when it’s time to do your BAS.
When you’re running your business, sometimes it’s hard to keep on top of your records and having out-of-control (or non-existent) records makes doing your BAS more difficult. We’re here to help with some tips for making your next BAS stress free!
- Keep records!
- Vehicle logbooks
- Run a regular reconciliation of your sales with your bank statements
- Use the correct GST accounting method (more about that here: https://www.ato.gov.au/business/gst/accounting-for-gst-in-your-business/choosing-an-accounting-method/)
- Make sure to claim GST credits at the right time
- Keep all your tax invoices and other GST records for five years.
But what if you make a mistake? Well, Focus Bookkeeping can help your business with ongoing services like bookkeeping, superannuation, and Business Activity Statements including BAS preparation, BAS review, and BAS lodgement. Read more about Fabiana and Focus Bookkeeping. Contact Fabiana for an obligation-free chat.
Also be sure to check on your JobKeeper program status this month. It’s well worth reviewing that you’ve got everything in order, since the payments have now changed. Check out the Key Dates for more information on JobKeeper this month. Don’t forget to check for any state government programs too!