A BAS return (Business Activity Statement) is the return that businesses registered for GST need to lodge, generally quarterly, to account for the difference between GST that has been collected and GST paid to suppliers.
It also accounts for any PAYG (Pay As You Go) that has been withheld from employees and some contractors.
Sometimes a BAS return must also account for an advance on your income tax, which is called PAYG Income Tax. BAS returns are generally due by the 21st day after the end of the quarter with the one exception of the December quarter. In this one instance it is due by the 21st of February.
The truly important step to remember with GST is to keep a separate bank account specifically for GST that has been collected by you, via your services. Some banks offer low or no fee accounts where you can put your GST aside. The most common pitfall within small or even larger businesses is their failure to put aside the GST that is generated by their sales.
There are also often opportunities to receive a refund from the ATO which are missed, simply because your BAS has been incorrect. Another mistake is forgetting to set aside the tax that is withheld when you pay your employees and some of your contractors. Failing to plan for this can leave you caught out with no money to pay your business tax obligations. Whilst payment plans can be made with the Australian Taxation Office, heavy penalties can also apply in many instances.
With the help of Tradie Bookkeeping Specialists and our in-depth knowledge and experience in both the Trade industry and Trade Bookkeeping, we can advise you and help you plan your cash flow and cash management. The trade industry notoriously fluctuates, with both good times when you cannot keep up with the workload and down times, when it is difficult to find sufficient business to keep yourself and your employees and contractors busy.
Let us guide you through the process. Our experience will ensure that if you are due for a BAS refund, rather than having to pay, you will get it.
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