You’ve finally got your business up and running. Things are going well. You’re marketing on social media, perfecting your product, and making plenty of sales.
Suddenly, you get a notice from the Australian Taxation Office. It’s time to submit your BAS! After all, the government needs its share of the pie.
Take a deep breath. Writing business activity statements does not have to be a difficult process.
Read on to learn more about business activity statements, and why they are necessary for your company.
What Is a BAS?
Companies often create different business statements. These include mission statements, activity summaries, and more. However, a business activity statement (BAS) relates to tax reporting and payment.
This form is submitted to the Australian Taxation Office on a monthly, quarterly, or annual basis. In this statement, a company reports its tax obligations.
You will need to report a few different things in your BAS. The first is the Goods and Services Tax (GST). The amount of GST collected affects the timeline of reporting requirements, so be sure to keep good sales records.
You must also report pay as you go (PAYG) installments and withholding taxes.
Other taxes that you are required to report include luxury car taxes and wine equalization taxes. You must also report fringe benefits tax installments and fuel tax credits.
You can pay your BAS with a credit card, debit card, or online. Early payments are allowed, but late payments will be subject to interest.
How Can I Make Writing Business Activity Statements Easier?
When researching how to write a BAS, you may find yourself overwhelmed. Fortunately, planning and organization will help streamline the process.
Throughout the life of your business, it is important to keep good financial records. You’ll want to keep track of all expenses and profits. This will help when it comes time to write your BAS.
When it comes to paying business taxes, you don’t want to get caught off guard. Open a GST account and regularly transfer the customer-paid taxes into it. If you specifically set aside this money, you won’t be scrambling to pay it when the time comes.
If writing business activity statements seems like too much of a burden for your company, consider hiring BAS services. A professional BAS service will assist you in lodging your form properly.
These services can also assist you in meeting payment deadlines, so you can avoid interest penalties. They will also help streamline your reporting process.
But what happens if you make a mistake? You can simply correct it on your next activity statement.
Using a BAS service will help avoid needing to make these corrections. They can also help you make adjustments if necessary.
Report Your Taxes With Confidence
Writing company statements can be daunting, especially when your tax obligations are on the line. When it comes to writing business activity statements, your peace of mind is worth it. Use a BAS service and make sure your tax obligations are reported properly.
Be sure to check out the business topics on our site for more entrepreneurial advice.
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