The time for the most recent quarterly Business Activity Statement (BAS) is rapidly approaching, and while the ATO makes every effort to make the process as pleasant as possible, you still have some work to do before you can complete and lodge your BAS.
The first and most crucial stage is to decide how you’ll handle your BAS. Although BAS lodgements with MicroChilli’s makes it easier to organise the necessary data, you must still take steps to ensure that the data displayed in the reports you generate is accurate. Hiring a BAS registered agent to assist you with your statement has a number of benefits.
The procedure of lodging the BAS on your own is not complicated, but it can be time consuming depending on how well you keep your records. There are several key procedures to follow, and it’s important to remember that they must be completed correctly to avoid fines.
The first step is to gather information
To begin, you must reconcile all your accounts so that all of your data is accurate and current. This entails scrutinising your financial records and ensuring that your bank statements and accounting information are in sync. You must also ensure that all purchases and cash expenses are recorded, that all creditor information is precise, and that all outstanding monies are justified.
Gather any accounts with business transactions, as well as invoices and receipts for the same, as well as invoices and receipts for all cash transactions, for this stage. Moreover, you can run the Bank Reconciliation Summary and look for any exceptions in your general ledger.
Fill in the blanks with missing transactions
This procedure is substantially streamlined by software like Xero, which connects directly to your business bank account, but if you’re doing it manually, it could take some time. You must record any missing transactions for which you have receipts and invoices. Each one requires a date, the total amount of the transaction, GST, and a description.
Add up all of your records
You may either fetch an Activity Statement or manually add up all of the data to figure out how much GST you owe in total or for a particular tax period. This is the part where accuracy is crucial, so double-check that everything is correct!
You’ll also need to figure out your PAYG, or the amount of tax taken from employees’ paychecks. You’ll need to go over your payroll and enter the amount of tax withheld as well as your employees’ gross wages. If you don’t have any employees, leave this box blank.
Check to see if your records are up to date and file them.
Once you’ve completed the BAS, make copies of any applicable papers and update your records with the updated information. After that, you have the option of mailing a paper copy of your BAS form to the ATO, filing online using the ATO portal, or having your agent lodge it for you. Make sure you pay your taxes on time or work out a payment plan with the ATO.
