Most successful businesses spend extra time record keeping and making sure they’re getting their tax right. They prepare and lodge business activity statements and know that they can save time in the long run once these are properly set up and organised.
Your BAS can be lodged online through the ATO Business Portal or from a Standard Business Reporting enabled software. You may be eligible for a two-week deferral to lodge and pay your BAS if you lodge it online. Sole traders can also lodge through myTax.
Remember that it is important to hold a valid tax invoice to claim any GST you are entitled to and it must state the GST amount included in the price. You must also reconcile bank records with your accounting records to make sure all income and expense transactions are covered. The same goes for your business’ credit card or petty cash transactions. Meanwhile, capital acquisitions need to be recorded in a separate section of the BAS because the GST code used when processing these transactions in the accounting software is different.
Make sure you stay on top of your tax by:
- Keeping all BAS records electronically for five years;
- Only claiming GST credits when you have paid the GST for business purchases that include GST in the sale price from GST-registered suppliers;
- Checking that all the amounts you fill in are for the period you’re completing, entered at the right labels and only include dollar amounts (no cents);
- Putting the GST you receive in a separate account so it will be easier to pay your BAS and manage your cashflow;
- Lodging on time by knowing your deadlines (remember that lodging late incurs penalties); and
- Getting refunds quickly by being up-to-date and having your correct financial institution details.
Information provided here is of a general nature and it is best to consult an experienced tax agent as your business’ circumstance may vary every EOFY.
As you look for different ways to grow and improve your business, seeking professional advice from a business consultant could prove to be an important and helpful decision.
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