Running a small business comes along with many responsibilities. And if a business is a GST registered business then it becomes imperative to make sure all your records are kept compliant so that you can lodge your BAS on time to the ATO. Managing business operations along with financial aspects becomes a daunting task for a business. In this article, we will learn about what is BAS and how BAS accountants can help small businesses.
What Is BAS Accounting?
Business Activity Statements (BAS) are a government form that every business in Australia must submit to the Australian Taxation Office (ATO). It is essentially a summary of all the taxes you have paid or need to pay during a specified period. The ATO uses BAS to assess your tax liability. However, the type, number, and amount of taxes you’ll have to pay will depend on various factors such as the size of the company, the number of employees, the benefits it offers, the type of products it offers, and its location in Australia.
BAS statements allow you to let the government know how much money you’ve collected and how much you’ve paid out. It encompasses a wide variety of payments, including GST, pay-as-you-go (PAYG) income tax instalments, fringe benefit tax credits, PAYG tax withheld, wine equalization tax (WET), luxury car tax (LCT), and so on.
Roles of a BAS Accountant
An Australian Taxation Office Registered BAS Agent can provide many levels of information, advise clients and/or represent their interests before the Australian Taxation Office in relation to various BAS services. These include:
- Payroll, including the withholding of tax amounts and associated reporting requirements.
- Other PAYG Withholding amounts such as no ABN, Interest & Dividend.
- Payment of income tax via PAYG Instalments.
- Wine Tax, Fuel Tax, and Luxury Car Tax.
- Fringe Benefits Tax (FBT) payments.
- Taxable Payments Annual Reporting system.
- The Superannuation Guarantee system.
BAS Agents can also assist with the design, setup and implementation of business compliance systems, advise how various relevant areas of the law affect them and review client operations in this regard to ensure compliance.
BAS statement due dates
Your BAS statement due dates will be displayed on your BAS statement. BAS statement dates are determined by your business’s reporting and payment cycle:
If your company’s GST turnover is below $20 million, you’ll need to report quarterly. The BAS statement due dates for each quarter are as follows:
Quarter 1: July, August, September – 28 October
Quarter 2: October, November, December – 28 February
Quarter 3: January, February, March – 28 April
Quarter 4: April, May, June – 28 July
If your company’s GST turnover is $20 million plus, you’ll need to report monthly. The BAS statement due date for monthly reporting is the 21st day of the month at the end of the taxable period. For example, the BAS statement date for January would be 21 February.
If you’re voluntarily registered for GST and your GST turnover is less than $75,000 (or $150,000 for non-profit organisations), you’ll need to report annually. The BAS statement date for annual reporting is 31 October.