As a business owner, one of your key responsibilities is to stay compliant with tax regulations. One crucial aspect of this is lodging your Business Activity Statement (BAS). BAS lodgment can be a complex task, but with proper preparation, you can ensure a smooth and stress-free process. Here’s what you need to know to get ready for BAS lodgment.

What is BAS?

A Business Activity Statement (BAS) is a tax reporting requirement for businesses in Australia. It outlines your business’s tax obligations, including Goods and Services Tax (GST), Pay As You Go (PAYG) withholding, and PAYG instalments. BAS is typically lodged quarterly or annually, depending on your business’s turnover and tax obligations.

Tips for Preparing for BAS Lodgment

1. Organise Your Financial Records:
   • Ensure that all your financial records are up-to-date and accurate. This includes sales records, purchase invoices, bank statements, and receipts. Properly categorised and organised records will make it easier to complete your BAS.
2. Reconcile Your Accounts:
   • Regularly reconcile your accounts to ensure that all transactions are correctly recorded. This includes reconciling your bank accounts, accounts receivable, and accounts payable. Any discrepancies should be addressed promptly to avoid errors in your BAS.
3. Calculate GST Correctly:
   • Accurately calculate the GST you’ve collected on sales and the GST you’ve paid on purchases. Ensure that you’re using the correct GST rates and accounting for any adjustments or corrections.
4. Review PAYG Withholding and Instalments:
   • Check your PAYG withholding amounts to ensure you’re deducting the correct amount from your employees’ wages. Also, review any PAYG instalments you need to make.
5. Use BAS Software or Tools:
   • Consider using BAS lodgment software or tools to streamline the process. Many accounting software packages offer BAS lodgment features that can automate calculations and ensure accuracy.
6. Stay Informed About Deadlines:
   • Be aware of your BAS lodgment deadlines. For quarterly BAS, the due date is typically 28 days after the end of each quarter. For annual BAS, the due date is usually 28 February of the following year. Missing deadlines can result in penalties.
7. Seek Professional Advice:
   • If you’re unsure about any aspect of BAS lodgment or need assistance, don’t hesitate to seek professional advice. An accountant or tax advisor can help ensure that your BAS is completed accurately and on time.
8. Keep Updated with Tax Changes:
   • Tax regulations and rates can change, so it’s important to stay updated with the latest information from the Australian Taxation Office (ATO). Regularly review any updates or changes that may affect your BAS lodgment.

Final Thoughts

Proper preparation is key to a smooth BAS lodgment process. By staying organised, calculating your GST and PAYG correctly, and seeking professional advice when needed, you can ensure compliance and avoid unnecessary stress. If you need assistance with your BAS lodgment or have any questions, BJT Business Advisors is here to help.