4 Common Mistakes to Avoid With BAS Returns: Our Guide
It’s tempting to put off tax paperwork until just before the tax season comes around. While it’s easy to let things slip because of other tasks that need to be handled, you will not want your business to get on the wrong side of the Australian Taxation Office (ATO). If your business is registered for GST, remember that you will need to submit quarterly, or monthly Business Activity Statement (BAS) returns, which is why it’s worth knowing how to do it properly.
In this article, we will share four common mistakes that you must avoid with BAS returns:
1. Missed Deadlines
As mentioned, your BAS must be filed monthly or quarterly. If you choose to do it every month, you will need to file it every 21st of every month and every 28th for quarterly. Failure to do this will cause you to be penalised, ranging from $110 to $550.
This is why you must never put off your BAS filing. To help you with this, use a calendar and set deadline reminders. Make sure that you also set a schedule when you can work on the paperwork.
2. Incorrect Information
The problem with putting off BAS paperwork is that when you cram everything to the last minute, the chances are that there will be more room for errors that will increase your stress. Make sure that all the information is correct on your documents. You can also use online accounting software to make the process simpler, which will prevent errors in calculations.
3. Submission of Wrong Information
Incorrect information can make situations even more complicated, yet this has been a common mistake. However, don’t let the process become stressful on your end. Avoid submitting incorrect information by having an outline that explains where you need to enter information. This will take practice, but it will be worth it in the end.
4. Inclusion of Dollars & Cents
Cents must not be included in your BAS return, which is why you need to round up the numbers to avoid it. Also, it is crucial that you don’t use any symbols, such as dollar symbols, words like “n/a”, and decimal points because these will increase the chance of errors. To avoid this, formulate cells in the spreadsheet to only use rounded dollar figures.
Indeed, doing the paperwork for your BAS return can be time-consuming. If you want things to go as smoothly as possible, you will need to make time for it within your work cycle. Putting it off will lead to errors, and chances are, you will be more stressed dealing with it when the deadline is fast approaching.
Additionally, if you don’t have much time to spare, and there are many tasks to accomplish in your business and personal life, it’s vital that you hire an accountant to help you out. Our accountants at New Wave Accounting and Business Advisory will do your BAS returns and at the same time, guide you through the process of other financial aspects of your business.
Filing for BAS returns can be stressful, yet it is your business’s responsibility to do so. Putting it off will not go well on your end, which is why you need to set aside time for it within your work cycle so that it doesn’t pile up. Doing this will help you prevent errors in the future that will eat more time. Now that you know several common mistakes made during BAS returns, you will be able to ensure that the process will go as smoothly as possible.
If you are looking for a business accountant in the Gold Coast, our accountants strive to minimise tax and maximise your profits. Get in touch with us today to learn more about our business growth strategies!