Sorting Out Your Accounts

What Is The BAS And Why It Is Crucial For Your New Business

by Lydia Washington

Running a business can become quite a complicated affair when it gets close to tax time, with many differences to the standard tax forms that a private individual has to submit. One of those is known as the BAS, and it is one of the most fundamental of all the different types of tax that a commercial company that is registered for GST has to submit. For those new businesses that haven't quite got the hang of their taxes yet, there are some things you should know about your BAS, and all of those questions can be answered by a good accountant, but here is a quick introduction.

What Is A BAS?

BAS stands for business activity statements which basically helps you calculate how much tax you actually owe from certain avenues of revenue. Those of most relevance include your GST obligations, any pay as you go instalments and a few other fringe benefits and minor areas of a similar nature. Your BAS has to be filled quarterly, and it needs to be accurate each and every time, even if you don't have anything to report at all. If your BAS is wrong or late, you can face quite serious fines.

How Do You Prepare A BAS?

It can be quite confusing trying to organise your BAS properly the first few times, and some people never get the hang of it. The added pressure of fines and threats of closure are not helpful, which is why many people turn to tax accountants to help them. Many accountants offer BAS preparation services to ease your transition through the financial quarters of the year and simplify how much money you actually owe. If you don't feel comfortable doing these calculations on your own, then involve BAS preparation services and put your mind at ease.

What Other Forms Need To Be Filed Quarterly? 

This question ranges greatly from business to business. Some have complex taxation that applies year-round while others, especially during COVID, have very little contact with the taxation office. If you aren't exactly sure where you fit in, then you need to talk to an accountant as soon as possible. Accountants can handle every aspect of your tax, and often at a price that is far cheaper than you might expect. Considering all the time and effort you would put in your BAS preparation with little guarantee you did it right, you are almost always better off just using the professionals.