Preparing and lodging BAS
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One of the most difficult and often overlooked aspects of small business bookkeeping is preparing to lodge business activity statement (BAS) either monthly or quarterly. BAS is a tax reporting requirement for business issued by Australian Taxation Office. Based on the report, you can pay GST (goods and services tax), PAYG (pay as you go) installments, withholding tax, and other obligations. A business with registered Australian Business Number (ABN) and GST receives a BAS when it is time to lodge. New financial year in Australia will start on July 1, 2016 this year, so now is the time to make sure you have accurate record of every business activity during the last month or quarter.
If you are like most business owners, your BAS should arrive in your mail about a couple of weeks before it’s due. BAS will be tailored according to your past statements or information you provided to the Tax Office when you registered. Failure to lodge BAS or inaccurate reporting can result in fines or paying more tax obligation than you really needs to.
The first step to prepare BAS lodging is to account for all financial adjustments within a period (monthly, quarterly, or annually depending on your business conditions). In the most basic sense, revenues are collected and the expenses are deducted. However, there can be plenty of detailed adjustments especially when there are differences between the checking account and the actual money spent or received for business activities
A typical business environment involves a professional bookkeeper to handle all transaction records and prepare for BAS lodging at the end of a period or beginning of a financial year. In case your business is just taking the first steps of development and currently running without a bookkeeper, you can take advantage of cloud accounting services to get every bookkeeping task done by professionals. At 360 Accounting, we offer professional bookkeeping services through cloud accounting to handle all sorts of regulatory Lodgement & Compliance requirements including BAS completion along with PAYG installment processing and PAYG withholding management. 360 Accounting delivers tailored services with personalized fee structure to suit your business needs.