Business Activity Statement: Essential Things A Small Business Should Understand

Running your small venture allows you to wear multiple hats, as there are many tasks which are needed to be completed by you. From hiring people to doing sales and marketing, there are many tasks which are done by you or by your small team. If your business is earning more than 75,000 AUD in a respective year, then you are required to file for BAS returns. One thing to keep in mind that only the firms registered for GST are required to lodge BAS as per the guidelines issued by ATO. It is done monthly or quarterly, helping in reporting on Goods and Services Tax (GST), PAYG withholding tax, Pay As You Go (PAYG) instalments and any other tax obligations. As a small business owner, you cannot miss out on taxes, which are an integral part of your business. For legitimately doing business, all the GST registered ventures need to inform the Government about the earnings through BAS statements. To do it correctly, you need to record all the GST amount you have collected on sales and how much did you spend on the purchases.

What is BAS?

BAS is a form, needs to be filled from 1 to 12 months in a year as per the business size. It can be lodged online via accounting software, myGov account (sole trader), ATO’s online business portal, and offline through the help of a registered tax or BAS agent.

How Can You Benefit From Your BAS?

Having our own business is not less than living in a Dream Design Property, but it also comes along with so many responsibilities which are needed to manage for smoother working. As every small saving is crucial for a small venture, the business owner must know legal ways of taking advantage of tax and deductions, helping in saving hard-earned money. To avail of the maximum benefits, having appropriate records are necessary to show all the expenses as per your business. Below are some perks which can help in saving your dollars. 

Home

Many businesses function from their home in the initial days of their operations or due to other respective reasons. If you too run your business from your home, then, you can deduct yearly utility costs for water, telephone, cable, electricity, and internet bills. 

Transport

Many small businesses use their respective vehicles for plenty of purposes, be it transporting goods or any other purpose. If you can show proper records which can present the business usage, you can save money in many ways.

Some Other Ways Which Can Lessen Your Taxes Are:

• Work Tools: Anything from PCs, printers, web security to advanced programming, home office costs and writing material.
• Advisors: Services you used, for example, publicising, showcasing and the expense of promoting, yet also clerks and Perth bookkeepers and their administrations.
• Valuable Asset: High value fixed assets possessed by the organisation can help in diminishing BAS.
• Representatives: Salaries, compensation, rewards or remittances, and super commitments.
• Expenses and Bills: Bank, telephone, web, power and water, protection expenses, and lawful expenses.
• Travel: Business engine vehicle utilisation, including extravagance vehicle leases, business travel costs including cost for flights and lodgings.

BAS statement due dates

Quarterly 

If your firm’s GST turnover is below $20 million, you’ll are required to report quarterly. The BAS statement due dates for each quarter are:

Quarter 1: July, August, September–28 October

Quarter 2: October, November, December–28, February

Quarter 3: January, February, March – 28 April

Quarter 4: April, May, June – 28, July

Monthly 

The BAS due date for monthly reporting is the 21st day of the month at the end of the taxable period. 

Annually

The BAS statement date for annual reporting is 31 October.

The above-mentioned information is necessary for understanding the significance of BAS and how with simple methods we can eliminate it without breaching any law. As a small business owner, it becomes a hard nut to crack for fulfilling each responsibility with equal attention, therefore, if you have a small business and facing any issue then it is a good call for getting professional BAS agent services. Money was and always will be one of the prime concerns for businesses of every size. Choosing these steps will save the hard-earned money in the long term which is very crucial for small business owners.