Business Activity Statements – what and when?
If you find paperwork a bit blah, blah, blah – here’s some helpful information when it comes to this important aspect of your business.
BAS is short for Business Activity Statement and it’s like a friendly reminder from the Australian Taxation Office (ATO) to keep your business finances in good shape. It's a way to tell the ATO about the taxes you need to pay, like the goods and services tax (GST) and the pay as you go (PAYG) amounts for your employees.
Whether you're selling surfboards in Scarborough or running a cosy cafe in Fremantle, your BAS helps keep track of your business transactions.
So, how often do you deal with BAS?
Well, it knocks on your door about four times a year, following the regular calendar: July to September, October to December, January to March, and April to June. Mark these dates on your calendar! You can also lodge your BAS monthly or annually, depending on the size of your business.
What goes into your BAS?
First, there's GST – that's the tax added to most things you buy or sell. You'll need to tell the ATO about the GST you've collected from your customers and the GST you've paid on your business purchases.
Then there's PAYG, which is all about the money you set aside from your employees' pay checks to cover their taxes. Your BAS is how you let the ATO know how much you've taken out.
Remember, keeping good records is super important. Hold onto your receipts, invoices, and other money-related documents. If numbers aren't your thing, no worries - contact your local bookkeeper; they're like superheroes when it comes to BAS!
In simple words, BAS statements are like your friendly money helpers. They help you manage your tax responsibilities and keep your business sailing smoothly. So, don't forget those quarterly dates, and keep your records in order.