As a business, you may need to complete a Business Activity Statement (BAS) so that you can keep a record of and pay any taxes that your business owes to the Australian Taxation Office (ATO).
If you are new to the world of business ownership, you might be worried about how to get this right, but with a few helpful tips, you can take advantage of your new knowledge and feel confident that you know exactly what you are doing.
What exactly is a Business Activity Statement?
A BAS is a form that informs the ATO about the various information it needs in order to work out your goods and services tax (GST) bill or refund.
GST is the 10% tax that is added to items or services that can be bought in Australia. When your business reaches the minimum GST turnover, you have to collect this tax from any sales to your customers and pay it to the ATO.
Depending on the size of your business, you could fill out the BAS form one to up to twelve times a year. If you need to fill out a BAS form it will be sent to you by the ATO when you need to lodge.
The form can also be used to work out other taxes including, employee income tax, business income tax, luxury car tax, fringe benefits tax, fuel tax credits and wine equalization.
What information do you need to fill out your BAS form?
You need to make sure that you are properly keeping track of all your business finances over the year.
The information that you will need to complete your BAS form is the amount of GST that you have collected on your sales and how much you have paid on purchases.
It is not necessary to include your tax invoice in your submission when you lodge your BAS. It is, however, always useful to have them to hand in case the ATO contact you wanting to see them at a later date.
Be aware that you only need to complete the sections of the form that apply to you and your business. It is also a good idea to check that all the figures you include on the BAS form are correct by double-checking them with your accurately recorded figures.
Services that can help you with you BAS form
As well as accounting and bookkeeping services, there are also services that can help you to complete your BAS online.
Services such as BAS Lodge can help get your BAS forms processed and reviewed with the help of licensed BAS agents, give you support over the phone and then will submit it directly to the ATO.
Services like this are excellent for when you are busy with your business or are just starting out in business because they can help you to make sure you get everything right the first time.
Taking the time to ensure that you get the essential financial things completed means you will have more time in the future to focus on other things that will help your business develop and grow.
Do you fill out Business Activity Statements?