If you run a business, you need to lodge a Business Activity Statement (BAS) return to report your Goods and Services Tax (GST) obligations to the ATO. Usually, business tax turnover above $75,000 per annum needs to be registered for GST. Small business owners often find it challenging to manage their operations while also ensuring that they file their BAS with the ATO by the due dates. You can seek help from a registered tax or BAS agent to lodge your BAS. To help you understand possible options to lodge your BAS, we’ve put together this guide to walk you step by step through the process.

Does your business need to register for Goods and Services Tax (GST)?

If the business reaches the turnover threshold mentioned by the ATO, then the business must register for GST. Usually, small businesses with aggregated turnover above $75,000 per annum will have to register for GST. Most of the income a small business pays and receives is liable to the 10% Good and Services Tax. You can ask your small business accountants in Melbourne to check out the GST you are liable to pay.

What are business activity statement lodgment options?

After registering your business for GST under your Australian Business Number, you have to record GST for all goods and services you sell unless it is a tax-free item. As a small business owner, accountants will recommend you use accounting software to record and monitor these transactions. This will make it easy to prepare a GST report at the end of each BAS period. The ATO needs businesses to prepare a BAS to report the total GST amounts received and paid. The following are the most common BAS lodgment options available:

• Online lodgment: Many businesses prefer using the online method for BAS lodgment. Filing BAS online is easy and quick, which means you:
  • Can file at a time when it’s convenient for you.
  • May receive an extra 2 weeks to file and pay your BAS.
  • May get a faster refund.
  • Get help to avoid mistakes.
  • Can recheck your BAS prior to lodgment and check that the amount calculated is equivalent to what you expect to pay or receive.
• Lodge through tax or BAS agent: A registered BAS or tax agent can file and pay on your behalf using your preferred electronic channel. When you use a tax agent:
  • They can check BAS and reminder messages sent to you through online services
  • You are still allowed to access your BAS using online services for business or myGov even if your tax accountant manages them for you.
• Lodge through mail: You can mail your completed BAS using the pre-addressed envelope in your BAS package.

Tips on BAS and GST

Tips on preparing and filing your business activity statements and getting your GST information right. You need to maintain records for BAS and GST, and for this, you can opt for bookkeeping for small businesses. The following are some record-keeping tips for BAS and GST:

• maintain records of all sales, expenses, wages, fees and other business costs
• keep the right records, such as logbooks to substantiate motor vehicle claims
• reconcile sales with bank statements
• use the right GST accounting method
• maintain all your tax invoices and other GST records for at least 5 years.

The following are some tips on GST credits:

• You can only claim GST credits on the portion of expenses incurred for business, and
  • do not claim GST on personal expenses, such as entertainment or food
• When claiming GST credits for discounted purchases, use the discounted price, even if the invoice doesn’t show a discount.
• When you claim invoices in a foreign currency, claim GST credits on Australian dollar value.
• If your business ceases or changes you may be liable to repay some GST credits for business assets you decide to hold. Despite this, you can ask your tax return accountant to keep you on top of any type of tax matters.

Conclusion

A blog shares information on different options available for BAS lodgment. If you are looking for professional accountants to prepare and file your BAS, you can ask Reliable Melbourne Accountants.