Wow! 31st March has ticked over and it’s now time to start preparing monthly and quarterly reports for your business. March end of month is an important period end for us at Carbon; we’re busy finalising all financial reports for the year to date (YTD) July 2016 to 31st March 2017. This information is critical as it gives business owners an idea around how their business has gone for this year 2017. YTD reports also let business owners project to 30th June and start making some plans around end of year tax strategies with their accountant. Check out our previous blog on strategies to minimise tax payable at EOFY.
As a business owner, you probably don’t have a lot of time on your hands. Particularly time to complete financial documents such as BAS that you may not have much expertise or knowledge with. It helps to get it right the first time, so we’ve put together some quick and easy tips to assist you.
What is a Business Activity Statement?
A business activity statement, often referred to as BAS, is a form submitted to the Australian Tax Office by all businesses to report their taxation obligations.
• Goods and services tax (GST)
• Pay as you go (PAYG) income tax instalment
• Pay as you go (PAYG) tax withheld
• Fringe benefits tax (FBT) instalment
• Luxury car tax (LCT)
• Wine equalisation tax (WET)
• Fuel tax credits
• Instalment notices for GST and PAYB instalments
The ATO has an online portal that allows you to lodge your BAS online. If you are using this method, you can submit it securely and quickly online using an electronic signature. Alternatively, the activity statement can be submitted by paper or via the phone.
Tips on Lodging a Business Activity Statement
• Use whole dollars – cents should be disregarded, and not rounded up to the next dollar
• Double check you haven’t entered the same invoice twice
• Ensure you report expenses and sales in the correct tax period
• Don’t claim GST on private expenses, such as food or entertainment
• If you enter your total sales in G1, ensure you include your GST on sales in 1A
Our top tip when it comes to submitting your BAS? Keep on top of your requirements by completing the information correctly and accurately. By getting it right the first time, you can spend more time focusing on your business and ultimately your clients. If it all sounds a bit daunting, contact Carbon to find out how we can help. We offer a range of bookkeeping services to assist businesses with submitting your BAS. Our bookkeeping team are registered BAS agents, so can lodge, vary and pay on your behalf. The ATO also has some great information that will help when lodging your BAS.