BAS Statement: Things A Small Business Need To Know About Business Activity Statement!

BAS Statement: Things A Small Business Need To Know About Business Activity Statement!

Do you run a small business or aspire to do so in Australia? If so, then, you need to know that what a Business Activity Statement (BAS) is and whether or not you can lodge it. Certain businesses again are allowed to prepare and lodge Business Activity Statement (BAS). These include businesses that are registered for Goods and Service Tax (GST) at the Australian Taxation Office. By preparing and lodging BAS effectively, small businesses can pay their potential taxes properly. These include paying the PAYG withholding tax, PAYG instalments, GST and other worthwhile taxes.

Gst Registration For BAS Lodgment!

As already told above that to lodge BAS, you need to register for GST with the Australian Taxation Office first. You can register for BAS only if your organization’s gross income is equivalent to AU$75,000. The amount specified again excludes a GST of ten per cent. So, the moment your company’s gross earning becomes equal to 75 thousand Australian dollars you need to register for GST. Subsequently, you need to procure a substantial Australian Business Number (ABN) to lodge your Business Activity Statement effectively.

BAS And Its Connection To Gst!

A notable portion of your BAS is straightaway connected to the GST aspect of your small business. Through the lodgment of your BAS, you are actually reporting the sum of GST accumulated on your sales. Make sure that you deduct any portion which you have spent on your potential purchases. As a result, the disparity will only remain in the form of your potential dues to the Australian Taxation Office and your potential refund.

BAS Lodgment And Its Significance!

Make sure that you procure your Australian Business Number (ABN) to register for GST accordingly. Subsequently, the Australian Taxation Office will automatically let you know the time-frame within which you need to lodge your Business Activity Statement! After it’s time to lodge your BAS you need to have the right set of numbers available with you. As per the instructions of the Australian Taxation Office, hence, make sure that you maintain comprehensive records pertaining to certain aspects. These include the following:

    • The potential costs encompassing your business.
    • The wages you pay to your employees.
    • The potential expenses of your business.
    • All the imperative records pertaining to your business fees and sales.
    • The pertinent stockade records of your business.
    • The pertinent logbooks of your company etc.

Remember, that when it comes to your BAS lodgment, you need to know certain things as the owner of a small business. These include your potential accumulated GST, the sales procured within a specific time-frame and the GST which you paid on certain indispensable purposes etc. They also include the tax being withheld from the wages which you have paid to your employees which primarily includes your potential PAYG Withholding taxes.

PAYG Installment System!

The section of your PAYG withholding taxes must be completed as an imperative part of your BAS lodgment. So, if you are in the PAYG instalment system right from the beginning, completing your BAS lodgment will no longer be a hassle for you.

Business Equipment And Things You Can Claim!

After paying your GST to the Taxation Office of Australia, you can claim it back as well. You can claim your GST on products that you have solely used for operating your business. Make sure that you don’t miss out on doing so even if your own service or product is not incurred by any GST. The potential items on which you can claim your GST include the following:

    • Employees: Super contributions, allowances, bonuses, wages and salaries provided to your staff or that of contractors etc.
    • Education: Includes professional and technical qualifications.
    • Work Clothing: Essential outdoor gear or protective outfits etc.
    • Travel: Fees for parking vehicles, expenses resulting from using a business motor vehicle, travel costs for business etc. Travel costs for business primarily include expenses required for renting accommodations and booking flights etc.
    • Business Overheads: Include legal rent and fees, premiums for insurance, water bills, electricity bills, bills related to internet, phone and your potential banking fees.
    • Assets: Includes expenses pertaining to the various intellectual and physical items which a particular business owns.
    • Consultants: Costs related to the external services of your business that help you to operate the business properly. These include your financial advisors, accounting services and marketing expenses etc.
    • Tools of Trade: These include costs pertaining to equipment and tools which you have used primarily for your business. All your stationery expenses, home office costs, costs related to software, internet access, printers and computers comprise the checklist.

Hire a Bas Agent Perth to make your potential claims effectively.

Documents Needed To Prepare And Lodge Your BAS!

Make sure you are readily available with the following credentials for the successful lodgment of your Business Activity Statement!

    • Clear all your potential dues you owe to the ATO or alternatively arrange a payment plan with them.
    • Invoices and receipts pertaining to your potential financial and business transactions
    • Documents providing information pertaining to your employees, your business and its potential income.
    • Credentials that prove the amount of GST you have spent on your potential business after accumulating a lump sum related to the same.
    • Run the Bank Reconciliation Summary to verify that whether the balance in your Xero account and the actual bank balance is matching or not. In case of any discrepancies, run the report to find out any duplicated, deleted or missing transactions effectively.
    • Keep all your records up-to-date with the latest bits of information. You can lodge your BAS online via the ATO portal or alternatively mail a hard copy of it to the Australian Taxation Office.

Make sure that you prepare and lodge your BAS within the due date. Remember that you can lodge your BAS on a quarterly, monthly or that of annual basis. Opt for high-quality accounting or bookkeeping services Perth to prepare and lodge your BAS with the assistance of a qualified BAS agent. Aside, your BAS agent will also ensure that you lodge and pay for your BAS with accurate and the most substantial financial records ever!

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