How Small Businesses Can Prepare Their BAS in Australia

Small business owners in Australia are required to keep a time-specific BAS record. The Australian Tax Office oversees the submission of BASs, or business activity statements. You must timely file the BAS if your company is registered for GST. You might incur fines if you don’t. In this article, we provide some useful advice on how small businesses in Australia can prepare their BAS.

Which Taxes Are Included in The BAS?

Before you file it, you should review the BAS preparation checklist and ensure that all information is accurate. Just some of the taxes that are included in the BAS are as follows:

• GST (Goods and Services Tax)
• Instalment Notice (GST and PAYG instalments)
• WET (Wine Equalization Tax)
• FBT (Fringe Benefits Tax)
• PAYGW (Pay As You Go Withholding)
• PAYGI (Pay As You Go Instalments)
• LCT (Luxury Car Tax)
• Fuel Tax Credits

Develop a Streamlined Process for Submitting Your BAS

• Organize your Documents

Begin gathering the required receipts and invoices. The paperwork must contain precise details regarding the transaction, date of transaction, GST, and description. The task will go more smoothly if your accounts are routinely updated. Therefore, you are advised to use accounting software to help you manage the process.

• Transaction classification

If you develop a classification system for classifying the entries according to tax type, you will find it much easier to manage your taxes going forward.

• Lodge the Submission with BAS

Once all the required information has been correctly entered, you can submit the form offline, online, or via a BAS agent. You must be aware of the precise dates for lodging in order to submit it online and avoid a fine. You can contact the ATO if you have any questions.

• Maintain a copy of your records

You should retain a hard copy or digital copy of the document for both individual use and ATO requirements after submission. The copy should be kept for five years, if possible.

Once you are familiar with all the fundamental steps involved in preparing a BAS, you can file it quickly.

What Advantages Can You Get From Hiring An Agent To File The BAS?

You won’t need to register your business for the GST if it is still in its infancy. However, if your annual GST turnover exceeds the threshold amount, which is $75,000, you must register for GST within 21 days. It can be submitted electronically, manually, or through a BAS agent you’ve hired. The benefits of using a BAS agent are described below.

Do you run a small business?

Even if you can’t anticipate the future, you can ensure that your company is protected by purchasing the appropriate small business insurance. This type of insurancehelps to ensure you are protected in the case of unanticipated expenses and claims, precisely when you require assistance.

Safe Harbor Requirements

The tax department will not hold you accountable as a consumer if the BAS agent makes a mistake because the agent will represent you before the Tax Office. However, if you have made a mistake and have managed your own submission, you will be subject to fines for any lodging errors.

Conduct Guidelines

The Tax Practitioners Board, sometimes known as the TPB, regulates accounting agents. They continually monitor the agents to see if they are adhering to a certain code of behaviour. As a result, you can rest assured that the agents do your work with honesty, fairness, and knowledge.

Registration Requirement

Specific registration requirements, such as completing higher education, must be met by BAS accountants. The completion of a BAS or GST course is an extra requirement. One must have at least 1400 hours of job experience over a four-year period before registering.

Academic Prerequisites

The BAS agents must complete their education while working. Every three years, they must conduct 45 hours of CPE activities for the TPC registration renewal. They participate in academic courses, make presentations, produce research articles, and run workshops as part of their activities.

Adding a Deadline

A BAS accountant might request an extension of the lodgement date when they submit the statement on your behalf. If you self-lodge and are unable to submit it by the deadline, penalties will apply.

How Do You Pick A BAS Accounting Agent That is Right for You?

A BAS agent may be a good choice for maintaining financial records properly. Here are some things to think about when choosing a BAS agent.

Qualifications

Prior to meeting the agent, you should talk about their credentials and ascertain their area of expertise is aligned with your needs.

Services

Check to see if they offer routine services or offer something special. The most crucial thing to do is to make sure they meet your specifications.

Customer Base

The reputation of a company or an agent is one of the most important decision considerations. The diversity of their clientele is a sign of their comprehensive offerings.

Cost

The fees should then be discussed. If you discover that they offer first-rate services at a reasonable price, you have made the right decision.

Location

Another important factor is the accountant’s location. Preferably, you should look for an accountant who works in your area as he or she will be informed of the guidelines that are relevant to you.