2. Getting started: Basics of lodging BAS for small businesses<\/a><\/p>\n\t 3. How to lodge BAS?<\/a><\/p>\n 4. What are the common mistakes businesses make when handling their BAS and how to avoid them?<\/a><\/p>\n\t 5. What are the key deadlines associated with BAS submission?<\/a><\/p>\n\t 6. When things go wrong: Failure to Lodge on time penalty<\/a><\/p>\n\t 7. What are the specific responsibilities and benefits of working with a BAS agent for a business?<\/a><\/p>\n\t 8. How to lodge BAS: Tips and best practices for efficient and accurate BAS preparation and submission<\/a><\/p>\n\t 9. BAS fixup work in practice: How I help my clients<\/a><\/p>\n\n\n\n <\/p>\n\n\n\n The BAS (Business Activity Statement) process for small businesses involves reporting various tax obligations to the Australian Taxation Office (ATO). Small businesses are required to submit their BAS either monthly or quarterly, depending on their annual sales turnover. <\/p>\n\n\n\n The BAS typically includes reporting on goods and services tax (GST), pay as you go (PAYG) withholding tax, pay as you go (PAYGI) business instalment, and other tax obligations you may have for your business.<\/p>\n\n\n\n If you run a small business and you think you need to lodge BAS, here\u2019s what you should know: <\/p>\n\n\n\n N.B.<\/strong> When it comes to filling out the BAS, businesses need to report the total sales, GST collected on sales, GST paid on purchases, and other relevant tax obligations. It’s vital for small businesses to reconcile these figures with their accounting records to ensure accuracy. After completing the necessary calculations, the BAS can be lodged either online using the ATO’s Business Portal, or through a registered Tax or BAS agent.<\/p>\n\n\n\n Business owners have several options for lodging their Business Activity Statements or BAS. These options provide flexibility for businesses to choose the most convenient method for their circumstances.<\/p>\n\n\n\n When submitting your BAS, you have a few options to lodge online, namely through:<\/p>\n\n\n\n If you’re using a registered Tax or BAS agent, they can handle all your BAS needs \u2014 submitting it, making any changes, and taking care of payment deadlines, all online. But even when your agent is managing these tasks, you can still view your BAS details yourself. Just log into the ATO’s Online Services for Business or your myGov account, and you’ll be able to access all information there.<\/p>\n\n\n\n If you’re a business owner, you can send your filled-out BAS form by post using the envelope that comes with your BAS paperwork. If you spot a mistake on the form, it’s okay to use white-out to fix it. And if you’ve misplaced your BAS form or haven’t gotten one, just give the ATO a call to get a new copy. **Note this is being phased out<\/strong><\/p>\n\n\n\n Remember, if you\u2019re lodging BAS online, then you can\u2019t send it by mail.<\/p>\n\n\n\n If your business has nothing to report for the period, you can lodge a ‘nil’ BAS online or by phone using an automated service available 24\/7. <\/p>\n\n\n\n Keep in mind that you\u2019ll need your BAS document identification number (DIN) to use this service, this is found on your BAS paperwork received. <\/p>\n\n\n\n Handling BAS can be a bit tricky, and businesses sometimes stumble into common pitfalls. Here are 10 typical mistakes and avoidance tips on how to sidestep them.<\/p>\n\n\n\n Mistake<\/em>: Submitting your BAS past the due date can lead to penalties.<\/em><\/p>\n\n\n\n Avoidance tip<\/em>: Set reminders or use accounting software to stay on top of lodgement deadlines. It’s like having a virtual assistant that never forgets. <\/p>\n\n\n\n Mistake<\/em>: Making errors in your BAS calculations or providing incorrect information.<\/p>\n\n\n\n Avoidance tip<\/em>: Double-check your numbers before submitting. If math isn’t your forte, consider getting a trusted accountant or BAS agent to lend a hand. <\/p>\n\n\n\n Mistake<\/em>: Misplacing invoices, receipts, or other crucial documents.<\/p>\n\n\n\n Avoidance tip<\/em>: Create a system for organizing your financial records and use accounting software such as QuickBooks Online. It’ll save you from a treasure hunt when the tax season rolls around. <\/p>\n\n\n\n Mistake<\/em>: Not keeping up with changes in GST regulations.<\/p>\n\n\n\n Avoidance tip<\/em>: Stay informed! Follow updates from the ATO, attend workshops, or consult with a tax professional to ensure you’re in the loop. <\/p>\n\n\n\n Mistake<\/em>: Neglecting to report PAYG withholding accurately.<\/em><\/p>\n\n\n\n Avoidance tip<\/em>: Keep detailed records of amounts withheld and paid. Your employees and the tax office will appreciate the transparency. The best practice is to use Payroll software such as QuickBooks Payroll that automatically works out all your ATO compliance figures.<\/p>\n\n\n\n Mistake:<\/em> Using the same account for personal and business expenses.<\/p>\n\n\n\n Avoidance tip<\/em>: Open a separate business account. It streamlines your financial management and makes reporting way less complicated. <\/p>\n\n\n\n Mistake<\/em>: Failing to adjust for mistakes in previous BAS submissions.<\/p>\n\n\n\n Avoidance tip<\/em>: If you find errors, don’t panic. Correct them in the next BAS. The ATO understands that we’re all human. <\/p>\n\n\n\n Mistake<\/em>: Assuming you can handle everything without seeking expert advice.<\/p>\n\n\n\n Avoidance tip<\/em>: A good accountant or tax\/ BAS advisor is like a superhero for your business. Don’t hesitate to seek their wisdom, especially when things get a bit too complex. <\/p>\n\n\n\n Mistake<\/em>: Forgetting that your BAS payment affects your cash flow.<\/p>\n\n\n\n Avoidance tip<\/em>: Budget for your BAS obligations. Knowing when payments are due helps you plan your finances better. <\/p>\n\n\n\n Mistake<\/em>: Ignoring the benefits of accounting software and technology.<\/p>\n\n\n\n Avoidance tip<\/em>: Explore accounting platforms that automate calculations and reminders. If technology can help us save time and money, why not use it?<\/p>\n\n\n\n By steering clear of these common missteps, you’ll make your BAS journey smoother and maintain a harmonious relationship with the taxman. Remember, it’s okay to ask for help when needed. Quite often when a client approaches me to review their QuickBooks file and historical BAS lodgements for accuracy, it\u2019s the accuracy of the data in the file that\u2019s not correct. And therefore, the BAS has been overpaid or underpaid. <\/p>\n\n\n\n With one such client after my initial review, I had to re-do his BAS lodgements for over 3 years, as some of the data was added in twice. As a result, he blew out his figures and they were inaccurate. He was very happy at the end as once I completed the review of all 3 years, and relodged his BAS, he was receiving a refund. Happy man! <\/p>\n\n\n\n BAS or Business Activity Statement submissions come with specific deadlines and penalties for non-compliance. The deadlines and penalties can vary based on the reporting frequency (monthly, quarterly or annually) and whether you’re reporting online or through other means. Here are the key dates to remember for each Quarter.<\/p>\n\n\n\n Please note: if you have your BAS agent or accountant lodge your BAS on your behalf, you have a BAS agent concession for lodgement and payment date – usually 1 month after the due date, which does not include the December quarter. There is no BAS agent concession for this quarter.<\/p>\n\n\n\n You may receive a Failure to Lodge (FTL) on time penalty if you have an obligation to lodge or report by a particular date but don’t lodge by that due date. This may include lodging your tax return, reporting PAYG installments, GST, or PAYG withholding on an activity statement by the due date. If you use an agent, the safe harbour provisions may protect you. As you can see below, it may come to a hefty penalty if not lodged on time. <\/p>\n\n\n\n This depends on the size of the entity and the period of time since the due date for lodgement. It is calculated per penalty unit this is based on $313 per unit (the amount valid, the last time I researched on the ATO site in January 2024).<\/p>\n\n\n\n For a small entity, the ATO calculate the FTL penalty at the rate of one penalty unit<\/a> for each period of 28 days (or part thereof) that the return or statement is overdue, up to a maximum of 5 penalty units.<\/p>\n\n\n\n For a medium entity, the penalty unit is multiplied by 2. A ‘medium entity’ is a medium withholder for PAYG withholding purposes or has assessable income or current GST turnover of more than $1 million but less than $20 million.<\/p>\n\n\n\n For a large entity, the penalty unit is multiplied by 5. A ‘large entity’ is a large withholder for PAYG withholding purposes or has assessable income or a current GST turnover of $20 million or more.<\/p>\n\n\n\n Again, I can\u2019t stress enough to you the importance of lodging on time. There are occasions where as a BAS Agent, at my practice Lauretta Finis Consulting<\/a> I can contact the ATO on your behalf, which I have done before for clients as they had extending circumstances that they required help with. <\/p>\n\n\n\n One of my new support clients came to me after a long battle with illness and I was able to work with the ATO and help with the removal of his penalties after I lodged all the outstanding BAS\u2019s. The ATO are there to work with us in all circumstances. <\/p>\n\n\n\n\n\t
What is BAS?<\/strong><\/span><\/h2>\n\n\n\n
Getting started: Basics of lodging BAS for small businesses<\/strong><\/span><\/h2>\n\n\n\n
How to lodge BAS?<\/strong><\/span><\/h2>\n\n\n\n
Lodge online via your Business Portal <\/strong><\/span><\/h3>\n\n\n\n
Lodge through a tax or BAS agent<\/strong><\/span><\/h3>\n\n\n\n
Lodge by mail<\/strong><\/span><\/h3>\n\n\n\n
Nothing to report (‘Nil’ BAS)<\/strong><\/span><\/h3>\n\n\n\n
What are the common mistakes businesses make when handling their BAS and how to avoid them?<\/strong><\/span><\/h2>\n\n\n\n
1. Late lodgement<\/strong><\/h3>\n\n\n\n
2. Inaccurate reporting<\/strong><\/h3>\n\n\n\n
3. Poor record keeping<\/strong><\/h3>\n\n\n\n
4. Ignoring GST changes<\/strong><\/h3>\n\n\n\n
5. Forgetting PAYG withholding<\/strong><\/h3>\n\n\n\n
6. Mixing business and personal finances<\/strong><\/h3>\n\n\n\n
7. Overlooking BAS adjustment rules<\/strong><\/h3>\n\n\n\n
8. Ignoring professional advice<\/strong><\/h3>\n\n\n\n
9. Underestimating cash flow impact<\/strong><\/h3>\n\n\n\n
10. Not utilising technology<\/strong><\/h3>\n\n\n\n
![\"Typical](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2024\/02\/typical_bas_mistakes.png\")
<\/figure><\/div>\n\n\n\nCase study: The importance of accuracy in BAS lodgements and the power of expert review<\/strong><\/h3>\n\n\n\n
What are the key deadlines associated with BAS submission?<\/strong><\/span><\/h2>\n\n\n\n
BAS Quarters<\/strong><\/h3>\n\n\n\n
When things go wrong: Failure to Lodge on time penalty <\/strong><\/span><\/h2>\n\n\n\n
How does the ATO calculate the FTL penalty?<\/strong><\/h3>\n\n\n\n
Small entities<\/strong><\/h3>\n\n\n\n
Medium entities<\/strong><\/h3>\n\n\n\n
Large entities<\/strong><\/h3>\n\n\n\n
Key takeaways for lodging BAS on time and avoiding penalties<\/strong><\/h3>\n\n\n\n
What are the specific responsibilities and benefits of working with a BAS agent for a business?<\/strong><\/span><\/h2>\n\n\n\n