So it’s time to lodge your BAS (business activity statement) which is the perfect time to gauge how your business is tracking.
The BAS (business activity statement) is a worksheet lodged to the ATO by businesses; it outlines the companies’ GST obligations for a given period of time, usually quarterly. As a result, to guarantee that you lodge your BAS correctly, there are a few crucial elements that need to be checked off, to ensure a successful BAS lodgement.
Reconciling is essential throughout the BAS submission process, ensuring that all accounts (loan, credit and bank) are reconciled and coincide with all bank statements. If this is not done correctly or is neglected it could result in your BAS lodgement being incorrect and may require revision at a later date.
Using technology for your BAS is important to make the process as seamless as possible. Make sure you are set up on the latest accounting software and apps that can be used to manage and handle a business’s bookkeeping. Using cloud-based accounting software ensures that all cash expenses paid during this term are kept and documented. Storing receipts in the cloud will ensure ease of access and efficiency when the time comes to reconcile your petty cash account and can be easily accessed by anyone with access to the file. The more you can automate electronically the less your accountant or bookkeeper will need to manually enter, which can be an extremely time-consuming and costly process.
Make sure that you are documenting your expenses correctly, ensure that all personal expenses that were paid through the company account are being placed into the Owner Drawings or Director Loan Account. All personal expense should be entered this way, instead of claiming as a ‘business expense’. Once again accounting software’s like Xero and MYOB provide ease with this coding process.
Next, on to Accounts Receivable and Accounts Payable. Look out for duplications and errors, ensuring that things have been allocated correctly. It can help to print these out and review the reports, this helps accidentally overlooking any errors or mistakes.
A review of the balance sheet, particularly the liabilities owed such as wages payable, PAYG
(pay as you go), GST and super payable can ensure that your file is up accurate and up to date.
Finally, review your BAS report. Ensure that all figures match and coincide with the exemptions report. Doing one last check will help to pick up any miscalculations and ensure that you have completed your BAS properly, before it gets lodged.
Think you might be ready to lodge your BAS, it’s recommended to have your accounting software reviewed by a registered BAS agent to ensure it is correct before lodging to the ATO. BAS Agents also get extra time to lodge your BAS which can assist with taking to the time to make sure everything is correct.
Lastly, there are a few important dates to remember, it is vital that you don’t miss these dates when submitting your BAS.
So, now that you have successfully lodged your BAS, how is your business tracking?
It’s the perfect time to look at your overall cash flow and what money do you have going in and coming out. You now have a better snapshot of your business to make better decisions for the next quarter and have an accurate indication of your current financial stance.
Brooke Arnott, Managing Director The Small Business Lounge