You did an excellent job of starting your business, and your services are selling quite well. You’re even beginning to hire other people. While everything seems to be going smoothly, you suddenly realise one important aspect that all business owners should deal with — taxes.
It’s not everybody’s favourite, but taxation is an essential aspect of the business that needs to be complied. If your business is registered, you’re entitled to submit a business activity statement (BAS) to the Australian Taxation Office. This document entails all your tax obligations, including GST, pay as you go installments (PAYGI), pay as you go withholding (PAYGW), and other taxes.
What is Business Activity Taxation or (GST reporting)?
The Australian Taxation Office (ATO) sends a BAS to a registered business before the reporting period. They will send it to you either in a physical form or electronically through their business portal. Taxes will differ depending on your business entity and activities.
Taxes on company profit is only one thing. There are other taxes that business owners still need to consider, such as capital gains tax, goods and services tax, fringe benefits tax, payroll tax, and many more. To top it off, all of these will be reported in your BAS.
It seems quite overwhelming at first. Eclipse Taxation helps you understand your company tax obligations easier. You can reach out to the team to get an overview of the key taxes your company is required to pay and the specific tax requirements relevant to your company.
Due Dates And Payment Method
The due dates for lodging are found on your business activity statement and are only paid during business hours. Hence, if your due date is on a public holiday or weekend, you would need to pay on the next business day.
Due dates vary depending on your GST turnover.
- If it is less than 20 million dollars, you must send your BAS quarterly.
- If your GST exceeds 20 million dollars, you need to report monthly.
- If you happen to voluntarily register your business for GST and have a turnover below $75,000, then you send your BAS annually.
It’s easy to pay your BAS, and the quickest way is through BPAY, a debit or credit card. You can also get a payment reference number (PRN) if you have lodged your BAS online.
These points might be a lot to take in, but there are mobile applications you can use to remind you of your dues. A registered tax agent, such as Eclipse Taxation, can also manage your BAS for you.
BAS Tips
After knowing about BAS, it pays to know some ways to avoid major mistakes and make the entire process easier. So, here are some tips to keep in mind while completing your BAS:
- Put whole dollar amounts and leave the cents out. Don’t round up to the next dollar either.
- Enter one invoice at a time.
- Only put in fields that apply to your business. If there is nothing to report, put in zero.
- Double-check your calculations and figures if you’re doing it manually.
Bonus tips!
- You can correct mistakes and go back to previous BAS.
- Keep a record of all expenses, sales, wages, and other business costs.
- Keep all tax invoices and GST records for five years.
What Should You Do Next?
Start monitoring all your expenses and cash flow, and have them documented. Managing and complying with your BAS may be confusing at first. You ought to hire a tax agent for your business to help you understand the process and get a system in place. Eclipse Taxation is equipped with the skills and taxation expertise you need. They have been in the industry for years and have helped many individuals and businesses alike since then.
At Eclipse Taxation, we do all the heavy-lifting in taxation while you maximise your time on what matters most in your business. Contact our team today!
Recent Comments