Top 10 tips for for making sure your BAS is lodged on time – Retriever Services

Top 10 tips for for making sure your BAS is lodged on time

Business Activity Statements (BAS) are a crucial aspect of tax compliance for businesses in Australia. BAS returns help businesses report their Goods and Services Tax (GST), Pay-As-You-Go (PAYG) installments, and other taxes. Late BAS lodgement or GST payment can result in penalties and fines from the Australian Taxation Office (ATO). To help you stay on top of your BAS and GST obligations, we have compiled the top ten tips for ensuring timely BAS lodgement and GST payment.

  1. Understand the BAS Lodgement and Payment Schedule: Businesses need to understand the BAS lodgement and payment schedule set by the ATO. The frequency of lodgement and payment varies depending on the business’s annual turnover. For example, if your business has an annual turnover of less than $75,000, you are not required to register for GST, but if your annual turnover is $75,000 or more, you must register for GST and lodge your BAS every quarter.
  2. Accurate Record Keeping: To ensure accurate BAS lodgement and GST payment, businesses must keep detailed records of their income, expenses, and other transactions. This includes keeping receipts, invoices, bank statements, and any other relevant documents for at least five years.
  3. Use Accounting Software: Consider using accounting software that can help you keep track of your business’s financial records and generate reports needed for BAS lodgement. This will save you time and reduce the risk of errors.
  4. Plan Ahead: Plan ahead and set reminders for your BAS lodgement and GST payment deadlines. This will help you avoid missing deadlines and incurring penalties and interest charges.
  5. Seek Professional Advice: Seek advice from a tax professional, such as an accountant or tax agent, to ensure that you are complying with tax laws and regulations set by the ATO. A tax professional can also help you identify opportunities to minimize your tax liability.
  6. Lodge BAS Electronically: Lodge your BAS electronically through the ATO’s Business Portal. This is a secure and efficient way to submit your BAS returns and make your GST payments.
  7. Check Your BAS Before Lodgement: Before lodging your BAS, double-check that all the information is accurate and up to date. This includes checking that you have claimed all the GST credits you are entitled to and correctly calculated your GST liability.
  8. Consider Voluntary Reporting: Consider voluntary reporting if your business’s annual turnover is less than $20 million. Voluntary reporting allows businesses to report and pay their GST annually rather than quarterly, reducing the frequency of lodgement and payment.
  9. Use ATO Payment Options: The ATO offers a range of payment options for businesses to make their GST payments, including direct debit, BPAY, and credit card. Consider using these options to ensure timely and accurate GST payments.
  10. Respond to ATO Communication: If the ATO contacts you regarding your BAS or GST payment, respond promptly and provide all the requested information. Failure to respond to ATO communication can result in penalties and fines.

In conclusion, timely BAS lodgement and GST payment are crucial for tax compliance and avoiding penalties and fines from the ATO. By following the ten tips outlined above, businesses can ensure accurate record-keeping, efficient BAS lodgement, and timely GST payment. Seeking professional advice and using accounting software can also help businesses reduce their tax liability and improve their tax compliance.

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