Business Activity Statement's - What to Know
Operating a business in Australia requires you to submit Business Activity Statements as a way to report and pay your business taxes to the Australian Taxation Office (ATO). Completing these activity statements can easily be a cause of stress for some business owners, especially during the time where they have to pay.
As a top provider of bookkeeping services in Gold Coast, we help your business grow and become profitable not only by offering you top-notch services but also by providing you with valuable information on accounting to ensure that you stay relevant in your industry. In this article, we summed up some of the most essential details that you need to know about Business Activity Statements. Knowing and understanding them fully can help you deal with your concerns better and make BAS preparation a positive and hassle-free experience for you.
What Is a Business Activity Statement?
Business Activity Statement (BAS) is used to report and pay the Goods and Services Tax and Pay As You Go taxes when making sales. This is issued by the ATO monthly or quarterly.
Goods and Services Tax
Goods and Services Tax (GST) refers to the 10 percent tax charged on goods and services. This is submitted to the ATO when you gross more than $75,000 of GST annually. Meanwhile, you don’t have to forward on any GST if you make less than that. Computing your GST is needed to submit your BAS.
Pay As You Go Withholding
Pay As You Go Withholding (PAYGW) is tax withheld on the payments to your employees and workers under contract and voluntary agreements. You are required to report and pay all these withheld amounts to ATO. Otherwise, you may get penalties or you may no longer be entitled to a payment reduction. For reliable and prompt assistance, you may turn to our skilled accountants in Gold Coast.
How Can Lodging Business Activity Statements Help Your Business?
Lack of knowledge often causes businesses to fail. Therefore, no matter how much effort you make to grow, your business can still potentially break down and collapse when you are unaware of the areas that need to be addressed and the aspects you need to pay close attention to.
Completing your BAS requires you to closely monitor your income and expenses. Doing this successfully can help you keep track of your business finances and give you a clear idea of your business performance. This can make you assess your strengths and weaknesses and allow you to come up with conscious efforts to further improve how you do business. In short, this can determine the actions you need to take to make your business successful.
As a business owner, you may perceive BAS completion as an inconvenience. However, by completing and submitting this, you will acquire all the necessary information required to transform your business and propel it to success. To get your statements prepared accurately, you may consider seeking the expertise of dependable accountants who know how to minimise your tax and maximise your profits.
Grow and scale your business with help from the best accountants in Gold Coast. Contact us to learn more about how we can help you!