Let’s Talk: Business Activity Statement’s (BAS)
This week was the last week to lodge your BAS (Business Activity Statement) for Q2 of the 22-23 Financial Year! Organising and lodging your BAS can be quite daunting, especially if your finances aren’t reconciled, and even more so if you’re new at running your own business. So, we’re here to help you understand it and even have a few tips on how to best manage BAS. BAS’s are especially important to your business, as they work to help keep an eye on your finances.
What is BAS? MYOB explains a Business Activity Statement (BAS) as a government form that all businesses must lodge to the Australian Tax Office (ATO). It’s a summary of all the business taxes you have paid or will pay to the government during a specific period.
Your BAS can be lodged monthly, quarterly or annually.
According to the ATO (Australian Tax Office) when lodging your BAS you should include the below payments (those applicable to your business):
Goods and services tax (GST)
Pay as you go (PAYG) income tax
Pay as you go (PAYG) tax withheld
Fringe benefits tax (FBT)
Luxury car tax (LCT)
Wine equalisation tax (WET)
Fuel tax credits
If you’re new at running your own business or simply need a few pointers, here are three insider-tips about BAS from a Bookkeeper to make these times of the year easier for you:
Stay up to date - check in and reconcile payments daily - don’t leave it until the end of the month or quarter, as the longer you leave it, the greater the task
Set aside money for the payments included in your BAS (GST and Income Tax) in a separate account so that you can ensure you have enough when the time comes to make a payment
Find a program or software that helps you manage your receipts and invoices online - we love using XERO.
Hiring a Bookkeeper, will allow you to consistently have organised, up to date books and precise books and reconciled payments. With up to date books, we will be able to easily lodge your BAS and make required payments on your behalf.
So, now you understand the importance and intricacy of BAS, you can see why we have all been busier than usual over the last couple of weeks! But, that’s what we’re here for and are here to help you should you need it to. Get in touch to enquire as to how we can help you with your future BAS lodgements and payments. Contact Lee-Anne today at lee-anne@lkaccounting.com.au or you can contact us via our contact form here.