A business activity statement, or BAS, is often required by businesses to work out your goods and service tax (GST) bill or refund. Knowing what one is is vital to running your business and an easy tax season, but learning more about the BAS form can be tricky.
Today’s guide explores the business activity statement in detail, shows you how to create a BAS, and includes tips and tricks to make the process smooth for your business.
What Is A BAS?
A business activity statement (BAS) is a form filled out between one and twelve times a year. When your business is registered for an Australian Business Number (ABN) and GST, the tax office will provide notification that the BAS is ready to be prepared.
The Australian Tax Office uses BAS to work out your goods and service (GST) bill or refund. It is also used for business income tax if you use the pay-as-you-go system, fringe benefits tax, employee income tax (PAYGW), fuel tax credits, luxury car tax, and wine equalisation tax.
The statement requires you to record the GST collected on sales and GST collected on purchases. There is no need to submit tax invoices, but it’s best to keep them on hand, as the tax office can ask for them. The statement can also require additional fields depending on your tax registrations.
Please note not all income and expenses will have GST applied. The best way to ensure GST has been applied correctly is refer to your tax invoices on hand to ensure the GST amounts match.
Your BAS should be lodged and paid in full if any amount is owed by the due date to avoid fines. When working with professional accountants, you can expect them to take care of your BAS for you, removing the worry of late fines and incorrect information altogether.
How To Prepare Your BAS?
Before lodging your BAS, having the information you need on hand is best. You will need the following information:
- Sales invoices
- Expense receipts
- Employee wage records
- Bank statements
- Records of GST payments or credits
You should also verify your GST registration. Contact the tax office if you are not registered for GST, which will slow the process down. While you do not need to send proof of these documents with your BAS, we recommend having copies on hand should they be requested.
How To Lodge Your BAS
There are several options for lodging your BAS, such as using a BAS agent online or by mail. Each option and how to use them to lodge your BAS are outlined below.
Lodging BAS Online
You can lodge your BAS online through several options:
- Online services for sole traders and individuals – this is accessed through myGov and provides you with access to your super and tax in one place
- Online services for business – which is a secure ATO website that manages your business tax online
- SBR-enabled software – which allows you to directly lodge your BAS from accounting, financial, or payroll software, integrated within your business software
You can choose which option best suits your needs and follow the steps online to lodge your BAS. You must input all the information and confirm its accuracy before submitting your BAS form.
Lodging BAS With A BAS Agent
A registered BAS agent or tax agent can lodge, vary, and pay your business activity statements on your behalf through their preferred online channel.
Using an agent grants them access to your activity statement and reminder messages sent to you through an online service. You can still access your BAS online for your business if your agent manages them.
A BAS agent is an excellent choice if this is your first time lodging BAS, you don’t have anyone in your company to lodge BAS, or you want to ensure that the statement includes all the relevant information. You can find registered agents through the Tax Practitioners Board, ensuring your form is safe.
Lodging BAS By Mail
Another option is to lodge your BAS by mail. You can complete your activity statement form and post it in the pre-addressed envelope. The original copy must be sent to the following address:
Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936
As the form is completed by hand, you might have mistakes that need adjusting. You should use whiteout to make any necessary changes. If you misplace your BAS, you can also get another copy, which can be ordered over the phone.
Lodging a BAS through the mail is not an option if you use an online channel to lodge your activity statements.
Lodging A Nothing To Report BAS
Sometimes, you will have nothing to report for your period, but you must still complete a form. This is a nil BAS and can be lodged online or over the phone (by calling 13 72 26). You can contact the automated service any day or time of the week, and you will need your BAS document identification number (DIN) at the ready.
Tips For Completing Your BAS
Completing your BAS is not overly complicated, but these tips will help to speed up the process and leave you feeling comfortable that you have entered the correct information:
- You should enter each invoice once
- You should enter whole dollar amounts – leave cents and do not round up to the next dollar
- You should only list expenses and sales that fall within the period you have made or received payment if you account for GST on a cash basis
- You should only complete fields that apply to you
- You should enter zero on the fields that do not apply to you
- You double-checked figures and calculations when completing the form manually
- You should correct mistakes made on earlier BAS forms
Final Thoughts
Initially, Business Activity Statements seem overwhelming, but they are simple forms to complete. They can help you secure refunds on your goods and services tax, give you insight into your business finances, and ensure that your business is paying the correct amount of tax.
The variety of ways to lodge your BAS makes it accessible for all businesses, with BAS agents on hand to assist you and complete the form on your behalf. When using an agent, select a registered agent who can help you complete your BAS and ensure you don’t pay too much in taxes on goods and services.
Book a free strategy meeting with a business accountant
Business Activity Statements might seem complicated just another concern for you to deal with as a business owner, but they are vital to make sure you’re getting the most out of your finances and tax. Contact one of our accountants today to learn more about BAS and how we can take some of the pressure off of your shoulders. We can check your BAS, complete future statements, and make sure you’re not overpaying on your taxes. Book your free strategy meeting with Walker Hill to get a headstart today!
