Are you stressed about your upcoming BAS obligations? For many small business owners, lodging your quarterly BAS and finding the money to pay on time can be quite daunting. If you find yourself in this situation, don’t stress; there are steps you can put into place to ensure you are on top of your BAS obligations moving forward.
Use one bank account
Trying to gather a list of your expenses can be a nightmare if you’ve used several different sources. Chances are you have paid suppliers in the form of a cheque, or EFT from the business bank account, used cash to buy small items and used the credit card for other items. No wonder BAS time is stressful – your transactions are all over the place. Who has the time to not only find but go through every little receipt and docket and enter them into a spreadsheet?
Keep it simple – try running as many of your business transactions as possible through a business bank account. As a result, your bank statement will virtually form a business summary for the last quarter and you will no longer have to keep a trail or mental note of expenses paid for.
Identify how much you owe and put the money aside
For many, the stress of lodging a BAS is finding the money to pay for it.
In order for this to happen every business owner needs to:
1. Identify exactly how much you need to set aside for GST and tax, and
2. Keep that money separate from other business funds.
For example, if you make sales of $22,000, $2,000 of that amount is GST which needs to be put aside to make payment to the ATO. If you are running a business and cannot quickly work out what your GST position is, it may be time to seek the advice of a professional who will be able to provide logical solutions.
Use a tax agent
Quarterly activity statements are due 4 weeks after the end of the quarter. By failing to lodge and pay by the due date, you may be fined $170. However, using a registered tax agent to lodge your BAS means you have until 8 weeks after the quarter to lodge and pay your BAS. This is one of the many advantages of getting professional help with your BAS.
If lodging your BAS is causing you and your small business problems each quarter, it’s time to speak to the tax accountants at The Quinn Group. Not only can we sort out current and overdue statements but we can figure out a solution to ensure your BAS obligations no longer cause you trouble. Submit an online enquiry on our website www.quinns.com.au or call 02 9223 9166.