Unjumbling Acronyms: What is BAS?

2 min read

This week, we’re exploring the acronym BAS, and listing some helpful ways to submit your BAS on time!

BAS stands for business activity statement. This statement is lodged monthly, quarterly or annually by business owners to report on your GST. If you’re earning under $75,000 and have not registered for GST, then you don’t need to complete a BAS return. But if you have applied for GST as a sole trader, partnership, trust or company - then buckle up:

 

Preparing BAS

 

1. Keep tax invoices for all your business purchases. That way you can claim those valuable GST credits when you lodge your BAS.

2. If spreadsheets and calculators are not really your thing, download some accounting software. It can help you manage cash flow and automatically calculate GST.

3. Consistently set aside the GST your business has collected. You’ll be thankful at tax time.

 

Lodging BAS

 

1. Don’t sweat it - if you’ve registered for an ABN and GST, you will automatically be sent a BAS reminder when it’s time to lodge.

2. While completing your BAS online, remember to use whole dollar amounts.

3. Double check your receipts by ensuring all expenses and sales are lodged in the correct tax period.

 

Honcho Hint: For a fee, BAS agents can lodge on your behalf and even help you qualify for a two-week deferral. However, if you use a third party to complete your BAS, double check if they’re registered with the Tax Practitioners Board (TPB). If not, you may be liable for fines if they make an error.

 

Remember to be organised! Start making more bling-bling, instead of accounting for that missing cha-ching.

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