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Helpful news, tips and business advice for small to medium business owners about how to maximise profit, minimise waste and grow and protect your business.

Company Setup Obligations 101: #3 Business Activity Statements

Starting a new business in Australia involves various financial and administrative responsibilities, one of the most important being the management of Business Activity Statements (BAS). For new business owners, understanding how to prepare and lodge BAS is crucial for compliance with the Australian Taxation Office’s regulations.

In the first two parts of this series, we covered the obligations involved in starting your own business and the deductions you can claim. Now, let’s delve into Business Activity Statements.

What is BAS for new businesses?

A Business Activity Statement (BAS) is a form submitted to the ATO by all businesses to report their taxation obligations. These include Goods and Services Tax (GST), Pay As You Go (PAYG) withholdings, and other taxes. Setting up your BAS is essential for businesses as it helps them manage and remit the taxes collected from customers and paid to suppliers.

Lodging Business Activity Statements

For most businesses, BAS must be lodged quarterly, with deadlines on the 28th of May, 28th of August, 28th of November, and 28th of February each year. It’s critical to adhere to these deadlines for lodging business activity statements to avoid penalties and interest charges. Some businesses may qualify for monthly or annual reporting, depending on their circumstances and turnover.

Preparing Your Business Activity Statement

  • Register for GST: Before you can lodge a BAS, your business must be registered for GST. This is mandatory if your business has a GST turnover of $75,000 or more.
  • Track Your Earnings and Expenditures: Accurate bookkeeping is crucial. Keep records of all sales, purchases, and other transactions that affect your GST and PAYG obligations.
  • Calculate Your GST: For each reporting period, calculate the GST you’ve collected from customers and the GST you’ve paid on business purchases. This will determine if you owe additional GST to the ATO or if you’re due for a refund.
  • Complete the BAS Form: Fill out the BAS form using the ATO’s online services or through accounting software that can pre-fill your BAS based on your bookkeeping records.

Lodging Your BAS

Businesses can lodge their BAS online via the ATO’s Business Portal, through a registered tax or BAS agent, or via mail. Online submissions are faster and can be more convenient, allowing for quicker processing and easier tracking of your submission.

Why Accurate BAS Lodgement is Essential

  • Compliance: Timely and accurate lodgement of BAS ensures compliance with ATO regulations and avoids penalties.
  • Cash Flow Management: Understanding your GST obligations and PAYG withholdings can significantly affect how you manage your business’s cash flow.
  • Financial Planning: Regularly updating and reviewing your BAS can provide insights into your business’s financial health, helping guide your financial decisions.

Streamline Your BAS Lodgement with Expert Guidance

While some small business owners manage their BAS lodgement themselves, the complexity of tax obligations often calls for professional advice. Partnering with PCR Accounting & Advisory can provide peace of mind and ensure that your BAS is prepared and lodged correctly, allowing you to focus more on running your business.

Business Activity Statements for Startup Businesses: We’re Here to Help

If you’re unsure about any aspect of how to do BAS or if you need help setting up your process for managing and lodging your BAS, we’re here to help. We specialise in assisting new businesses with their accounting needs, ensuring that your financial setup supports your business success.

Contact us today on 03 9847 7516 for tailored advice and support with your Business Activity Statements and other accounting needs.

Disclaimer: This blog post is for informational purposes only and should not be considered as financial or legal advice. Consult with a qualified professional for personalised guidance based on your specific circumstances.

Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.