BAS Return and Lodge BAS are to be known when you are in business. . If you own a small business in Australia, one of the factors that you should keep in mind is whether you have to submit a BAS form or not.
A BAS or business activity statement is an official form that includes several tax obligations such as PAYG (pay as you go) installment, GST (goods and services tax), FBT (fringe benefits tax), LCT (luxury car tax), etc.
There are many BAS agent services that can help you lodge your BAS properly so that you can avoid unnecessary penalties and fines. You can get Business Advantage by lodging BAS .
This blog discusses all the details you should know about lodging BAS, which you may find helpful.
Which businesses are Needed to lodge BAS Return
According to the rules set by the Australian Taxation Office (ATO), businesses registered for GST must lodge a business activity statement because it allows the companies to report various tax obligations, including GST.
Every Business needs to register for GST If the annual turnover is $75000 or more. On the other hand, the minimum annual turnover becomes $150000 or more for a GST registration for not-for-profit organizations.
The best part about lodging BAS is that you will not need to worry about the time. The Australian Taxation Office will send you a BAS form when the deadline is near.
How frequently should you lodge BAS?
The frequency you have to maintain to lodge the BAS for your business will depend on GST turnover. Search and Find bookkeepers near me.
- If it is under $20 million and the ATO does not ask you to report monthly, you must lodge the BAS quarterly.
- You have to file it monthly if the turnover is $20 million or more.
- For businesses with turnover below $75000 and voluntary GST registration, BAS should be lodged annually.
Most Australian businesses lodge their BAS quarterly. However, it may also vary according to individual circumstances. Specific quarterly dates for lodging BAS are as follows.
- 28 October for the quarter covering July, August, and September
- 28 February for the quarter covering October, November, and December
- 28 April for the quarter covering January, February, and March
- 28 July for the quarter covering April, May, and June
If you have to lodge your BAS monthly, you must complete the procedure by the 21st of the month after the taxable period. Therefore, for March, your due date will be 21 April.
On the other hand, for annual reporting, the deadline will be 31 October each year.
You can either lodge it yourself or hire a professional BAS agent Perth to do the job for you. You should also note that if your business has a GST turnover of $20 million or over, the BAS must be lodged online.
Several Tips For Lodging BAS
When the deadline is near, it is common for business owners to feel tense. However, there are several tips you may consider to simplify the procedure. First, you have to keep detailed records of your purchases and sales. Not only will this approach benefit your business finances, but it will also make your job easier when it comes to preparing and lodging a BAS.
According to the norms of the Government, you have to keep these specific records:
- How much revenue your business earns, and how much of it is utilized
- Who you employ
- From where you are operating your business
- How you manage your business matters
To know the detailed list of records, you should check out the website of the Australian Taxation Office.
In the next step, you must check whether you enter all the sales and costs for the correct period and that every tax invoice is entered only once. If there is any inaccuracy, you may have to pay fines. Therefore, it will be crucial to log all the information correctly.
Another factor that you should keep in mind is that it will be a better idea to open a separate bank account, specifically for GST. This approach will make it easier for you to report and pay your BAS within time. This will make easy to Lodge BAS
Last but not least, all GST records and tax invoices should be kept for five years. Several firms provide top-rated bookkeeping Perth, and thus, can help you find a professional bookkeeper who can help you keep the records properly.
What can happen if you are unable to pay on time?
If it seems impossible for you to pay on time, you must contact the ATO to know about the penalties. Having a tax file number (TFN) will be necessary to make the process smoother. Doing so will help your BAS agent find your tax records quickly.
In addition, you will also be able to develop a payment plan where all the payments can be divided into more affordable installments.
Options to explore if you cannot meet the deadline
For all business owners registered for GST, it is mandatory to lodge a business activity statement. But those who have no BAS registration are exempt from this condition.
If your annual business turnover is $75000 or more, you will need to have this registration and lodge a BAS. In that case, you have to be aware of all the lodging deadlines, thereby paying them on time. To make the process simplified, you can consider the factors we have mentioned above.
If you cannot meet the deadline, you can look for several working capital solutions for help. For example, selective invoice financing enables a business owner to leverage specific invoices to receive advanced cash, which can be used to pay the BAS.
The most beneficial point about this financing is that there are no long-term obligations, and receiving a maximum of 95% of the invoice value can be possible.
Another option to explore is equipment finance, where company vehicles, machinery, and equipment can be leveraged as collateral to collect the necessary capital.
How To Find Bookkeepers For Your Business?
Bookkeepers play valuable roles in keeping account records for a business, thereby maintaining the business cash flow. If you want to keep a bookkeeper in your team or choose to outsource, you have to first write ‘bookkeepers near me‘ in a browser’s search bar and explore the top results. you can know more on the Australian Taxation Office website too and explore how to Lodge BAS as well .