So, it’s time to lodge your BAS, now is a perfect time to gauge how your business is tracking.
What is a BAS?
BAS (Business Activity Statement) is a worksheet that businesses must lodge to the ATO. It outlines the companies ‘GST’ obligations for a given period of time, usually quarterly. There are a few crucial elements that need to be checked off to ensure a successful BAS lodgement:
The importance of reconciling
Reconciling is essential throughout the BAS submission process. You need to ensure that all accounts coincide with all bank statements. These accounts include your loan, credit and bank accounts.
Neglecting this process could result in your BAS lodgement being incorrect. This may lead to revision required at a later date.
Streamlining the lodgement process
Using technology for your BAS is important to make the process as seamless as possible. Make sure you using the latest accounting software and apps for managing and handling your business’s bookkeeping. Utilizing cloud-based accounting software ensures that all cash expenses paid during the term are documented.
Storing receipts in the cloud ensures ease of access and efficiency when the time comes to reconcile your petty cash account. Receipts can also be easily accessible by anyone who has access to the file.
The more you can automate electronically, the less your accountant or bookkeeper will need to manually enter, which can be an extremely time consuming and costly process.
Documenting your expenses
Make sure that you are documenting your expenses correctly. All personal expenses that are paid through the company account go into the Owner Drawings or Director Loan Account. Do not enter your personal expenses as a ‘business expense’. Once again, accounting software like Xero and MYOB provide ease with this coding process.
Accounts Receivable and Accounts Payable
Next, on to Accounts Receivable and Accounts Payable. Look out for duplicates and errors, ensuring that things have been allocated correctly. It can help to print these out and review the reports, this helps accidentally overlooking any errors or mistakes.
A review of the balance sheet, particularly the liabilities owed such as wages payable, PAYG (pay as you go), GST and super payable can ensure that your file is up accurate and up to date.
Review your BAS report
Finally, review your BAS report. Ensure that all figures match and coincide with the exemptions report. Doing one last check helps to find any miscalculations and ensures that you have completed your BAS properly, before it gets lodged.
Think you might be ready to lodge your BAS? We recommend that you have your accounting software reviewed by a registered BAS agent to ensure it is correct before lodging to the ATO. BAS Agents also get extra time to lodge your BAS which can assist with taking to the time to make sure everything is correct.
Lastly, there are a few important dates to remember, it is vital that you don’t miss these dates when submitting your BAS:
- July, August and September – Due 28TH October
- October, November and December – Due 28th February
- January, February and March – Due 28th April
- April, May and June – Due 28th July
So, now that you have successfully lodged your BAS, how is your business tracking?
Now is an important time to look at your overall cash flow, what money you have going in and coming out. You now have a better snapshot of your business to make better decisions for the next quarter and have an accurate indication of your current financial stance.