Each quarter, GST-registered small businesses submit a business activity statement (BAS) to the Australian Tax Office (ATO). The Business Activity Statement will show how much GST was collected from customers, and how much GST was paid to suppliers.
This lets the business work out their GST bill or refund, what tax needs to be withheld from payroll and submitted to the ATO, and their income tax instalments if they use the pay-as-you-go-system.
Any business can register for GST, it’s optional if your income is under a certain amount but you’ll have to do it once you pass a certain income level or want to claim fuel tax credits, or provide taxi services.
Your March 2018 monthly activity statement is due by the 21st of this month unless you are lodging with a tax agency like Tax Ideas.
Use the following checklist to make sure you are ready for lodgement day:
- Have you allocated all bank transactions to the correct accounts?
- Have you verified that the bank balance listed in your accounting software matches the balance in your bank account?
- Do you have tax invoices and receipts for all business-related transactions?
- Have you checked the GST tax codes for all transactions?
- Have you checked tricky transactions like agency arrangements, insurance or overseas purchases for GST tax code accuracy?
- Have you got paperwork for asset purchases or new finance arrangements?
- If you have to report PAYG withholding for employees, you also need to check that your payroll categories and tax calculations are correct for the quarter, (or last month for employers who lodge a monthly IAS).
Checking the figures at each of the BAS reporting labels means your statements are more likely to be accurate and less likely to need GST adjustments at the end of the financial year. This results in you having a more accurate picture of your liabilities throughout the year and being able to plan accordingly.
Need help lodging your BAS?? Let us do it for you! Book online today or call (02) 8318 1545.