How to Effectively Manage Your Business Activity Statements and Save Time
Published on 2022-04-11
Category: Business Growth
The Business Activity Statement or BAS is animportant part of being a business owner in Australia. Completing and submitting the BAS on time is extremely critical. But like most other administrative tasks, the BAS process can get quite intimidating without a proper approach.
This article provides newcomers with a comprehensive account of how to manage their Business Activity Statements efficiently while saving time.
What is a BAS or Business Activity Statement and Why Do I Need to Care?
The Business Activity Statement or BAS is a documentation reporting the tax obligations of businesses required by the Australian Taxation Office (ATO). A company’s BAS is a summary of its revenue as well as key expenditures over a certain period of time.
The BAS of a business should report its tax obligations of a wide variety of taxes, including Goods and Services Tax (GST), Pay As You Go (PAYG) instalment, PAYG Withholding Tax, Fringe Benefits Tax (FBT), Luxury Car Tax, and Wine Equalisation Tax.
So if your business has registered itself for the GST, has an annual income of $75,000 or more, provides transportation facilities for a fare, and wants to claim fuel tax credits, then it is highly important that your business has lodged a Business Activity Statement or BAS and submitted it to the ATO by the due date. However, if your business is a non-profit organization, then the criteria for lodging & submitting a BAS is an annual income of $150,000. In case your business has a lower income than these specified amounts, then registering for GST and submitting BAS isn’t mandatory.
What Are The Things You Should Know To Manage A Successful Business Activity Statement Process?
Managing a smooth and successful BAS process is not easy, and often requires special experience. Regardless, there are some things that are important to know to ensure seamless BAS process management.
1. Keeping the information ready
The important thing in managing a successful BAS process is consolidating your accounts having business transactions and financial records to ensure accurate and updated information. Having everything ready on hand is crucial for a seamless BAS process.
2. Recording transactions
Each & every bit & piece of your business transaction needs to be recorded for BAS. For this, you need to make sure that your accounting information resembles your bank statement to the last detail, and every expense, purchase, credit, and outstanding fund are thoroughly recorded. In case of any missing transactions, you need to fill them with the right information like date, amount transacted, GST, and purpose of the transaction.
3. Calculate tax
A BAS process requires you to calculate the total amount of tax you owe with extreme accuracy. You need to determine the amount of GST as well as your PAYG. To do this, it is important that you know the right process or are taking the help of specialized software or experts.
How to Make the Business Activity Statement Process Faster
Preparing and submitting your BAS might seem a bit challenging and consume a lot of time. But these tips will help you to simplify the process and make a Business Activity Statement faster.
1. Maintain accurate records
The key to a seamless, fast, and efficient BAS process is maintaining accurate records. Categorizing your business invoice, receipts, and information regarding transactions immediately will save a considerable amount of time and effort. Also, make sure that you are updating your accounts every week with all the relevant information.
2. Categorize your accounts based on BAS
Sorting your accounts and categorizing them matching the categorizations in the BAS form will facilitate easier reporting, preparation, and submission, while taking up as much lesser time.
3. Stay acquainted with BAS lodgement dates
There are different timeframes to lodge your Business Activity Statement, such as monthly, quarterly, or annually. But doing it on time is necessary and staying aware as to when your BAS date is due will help you avoid spending hours on it at the last moment. You can lodge your BAS monthly, quarterly, or annually. How frequently you lodge will usually depend on the rate of your cash flow.
5 Considerations when Filling in Your Business Activity Statements
Before you start filing your business’s BAS, focus on the following considerations:
- Regularly check the BAS and lodge dates to keep up with the BAS process requirements.
- Use the appropriate GST account to avoid risks or errors.
- Record your transactions with utmost effort to maintain optimum accuracy of account records.
- Choose an expert or a software thatwill help you lodge your BAS online.
- Make sure to lodge and pay your BAS on time or you will incur penalty fees.
Business Activity Statements are challenging to prepare and submit. BAS statements for small businesses more so. But with the right guidance and tool, it is easy to overcome these challenges effortlessly.
Tagged in: Business Activity Statements, BAS process, How to manage BAS, BAS lodgement dates, Business Activity Statements ATO, BAS statement, Business activity statements deadline, What are business activity statements, Purpose of business activity statements, How to prepare business activity statements
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