As a business owner, you have to look after numerous things in your business. When it comes to the preparation and lodgment of BAS and GST, you must be aware of each and everything about BAS to avoid making mistakes. However, if you are busy making business strategies and growing your business, you can seek help from small business accountants. In today’s blog, we’ll discuss a few tips for BAS and GST.
Tips for BAS and GST Record Keeping
If you keep track of every record, it will be easy for you to stay on top of your business. For this, keep a few things in your mind to:
- Keep records of all fees, sales, wages, expenses, and other business costs.
- Keep appropriate records, such as logbooks for motor vehicle claims and stocktake records.
- Bank account reconciliation.
- Make use of an accurate GST accounting method.
- Make sure to keep all your tax invoices and other GST records for at least five years.
A tax accountant in Melbourne carries a wealth of knowledge, so you can seek help from them to understand what GST credits you can claim.
- You can claim GST credits if you are purchasing something for business use.
- Don’t claim GST credits for private expenses.
- If the item is for personal and business use, you can claim the business portion of the purchase.
- If your business ceases or changes, you may have to repay some GST credits for business assets you want to keep.
- When claiming invoices in a foreign currency, you can claim GST credits on the value of the Australian dollar.
When not to claim GST credits?
You should not claim:
- GST-free items, such as staple foods, are purchases where the price does not include GST, such as bank fees and charges and stamp duty.
- Products that have been imported, unless you are the importer and you are importing them solely or partially for your business.
- Purchases made between businesses within a GST group. However, you can claim GST credits on purchases made between GST groups/branches.
How to lodge your BAS?
You can have various options for filing your business activity statements (BAS) and reporting your GST, PAYG withholding tax, pay-as-you-go (PAYG) instalments, and other taxes to the ATO. Even if you are late to pay by the due date, you still need to file your BAS on time. The following are some lodgment options:
You can have the option to lodge BAS online. Filing BAS online is a quick, easy and secure method. With an online method, you can lodge at any time. You may get a faster refund and avoid making mistakes.
Lodge through a tax agent in Melbourne
If you have a registered BAS or tax agent, then they can help you with the lodgment of BAS and pay on your behalf.
Lodge by mail
You can mail your completed and original BAS by using the pre-addressed envelope that is given in your BAS package.
Goods and Services Tax (GST)
GST is a broad-based tax of 10% on most goods, services, and other things that are consumed or sold in Australia. If you are a business entity, you use BAS to:
- claim GST credits
- report and make payment for the GST that your business has collected
GST Reporting Methods
The GST reporting method you use depends on your company’s GST turnover and other requirements for reporting:
- If your GST turnover is below $10 million
- you can report GST using the Simpler BAS reporting method
- if your total turnover is above $10 million, you can use either GST full reporting method or the Simpler BAS reporting method
- if you pay instalments on a quarterly basis and report annually, you can use the GST instalment method
- If you have a GST turnover of $10 million or above
- you can report GST using the full reporting method
The blog shares some important tips for preparing and lodging BAS and GST. If you are busy managing other business tasks, you can rely on a tax agent to help you prepare and file GST and BAS. For more information, you can contact Reliable Melbourne Accountants.