3 Practical Tips to Simplify Your BAS and GST Preparation
As a business owner, it is your responsibility to maintain accurate financial records and meet all your tax obligations. This means, becoming a GST-registered business and completing your BAS is crucial if you want to operate a legitimate business. If you’re unsure what to do, here are some tips from a business accountant that could help you set up your tax obligations.
BAS and GST Explained
You have probably found that running a business means learning a lot of new acronyms, one of the most common being BAS and GST. The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. If you’re starting a business, registering for GST is one of the first necessary steps you need to take. You’re basically letting the Australian Taxation Office (ATO) know how much you’ve collected and how much you’ve paid in terms of taxes levied on your products.
On the other hand, your Business Activity Statement (BAS) is a form that you fill out between one and twelve times a year, depending on your business size. The ATO uses the information on your BAS to work out how much your GST refund or bill is.
BAS and GST Processing Made Easy
Processing your BAS can be a bit overwhelming for those who are new to it. To make things easier, here are some valuable tips you can use so you can process your BAS more efficiently.
If you want to make paying BAS easier, it’s best to set aside a separate account dedicated just for your GST where it will accrue interest. This is a great way to make sure you always have enough cash at hand once it’s time to pay for your taxes.
Another great way to organise your BAS filing is to take it one step at a time. But to do that, you’ll need plenty of time to prepare your BAS, which means you need to start early. Don’t just ignore your BAS statement and leave it off until you're just days away from the deadline. Start early and keep accurate records of all your transactions.
There are a few things you need to remember when double-checking details that are important to your BAS. First, check your bank reconciliation report to make sure the bank balance in the report matches your bank statement. You also need to make sure that there are no outstanding transactions in the bank reconciliation report.
Protect Your Cash Flow
If you think paying your GST will somehow greatly affect your cash flow, you can pay via credit card, so you’ll have an extra 30-55 days of cash flow. If you somehow can’t make a separate account for your GST as a way to protect your cash flow, using your credit card is also a good alternative.
Any responsible business owner will do everything in their power to stay on top of their tax obligations, and that includes GST. These tips should help you get your tax preparation done just a bit easier. If you find yourself struggling to process your BAS, you can always partner up with a tax accountant in Gold Coast to help you organise your records more efficiently.
New Wave Accounting provides end-to-end accounting and bookkeeping services that can help scale and grow your business. We provide solutions to help you understand your tax obligations and ultimately help you increase your revenue. Whenever you need assistance in accounting and bookkeeping, contact an expert business accountant from our team to help you.