For every small business in Australia that’s registered for GST, preparing and lodging a Business Activity Statement (BAS) is a must. Staying compliant with the Australian Taxation Office (ATO) means lodging on time, reporting accurately, and keeping your records in order. This guide shares practical BAS tips to help small business owners manage the process efficiently and avoid penalties.
What’s Included in the Business Activity Statement?
A BAS reports several key tax obligations. Depending on your business setup, you may need to report:
- GST (Goods and Services Tax)
- PAYG Withholding (if you withhold tax from employee wages)
- PAYG Instalments (pre-payments for your income tax)
- Fringe Benefits Tax (FBT) Instalments
- Luxury Car Tax (LCT)
- Wine Equalisation Tax (WET)
- Fuel Tax Credits
Before you start, make sure you understand which of these apply to your small business.
How Small Business Owners Can Prepare BAS More Efficiently
1. Keep Records Up to Date
The easiest way to streamline your BAS preparation is to stay on top of your bookkeeping. Make sure every transaction includes the correct date, GST amount, and a brief description. Cloud-based accounting software can help keep your books accurate and accessible.
2. Reconcile Bank Accounts
Reconciling your business bank accounts ensures your BAS figures reflect your actual cash flow. It helps catch any missing or duplicate transactions before they cause issues.
3. Sort and Categorise Transactions
Correctly categorising your income and expenses ensures your business activity statement is accurate. Use clear labels in your software to avoid misreporting GST or PAYG.
4. Stick to BAS Lodgment Deadlines
Most small business owners are required to lodge their BAS monthly or quarterly. Mark the ATO’s lodgment dates in your calendar or consider working with a BAS agent to avoid penalties for late submission.
5. Keep Digital or Paper Copies
The ATO requires you to keep records that support your BAS lodgment for five years. That includes receipts, invoices, and workpapers. Store these securely, either physically or in the cloud.
Stay Ahead With Good BAS Habits
Managing your BAS doesn’t need to be a last-minute scramble. When your records are current and your systems are in place, preparing your business activity statement becomes a routine part of running a small business.
If in doubt, seek help from a BAS or tax professional—especially if your business is growing or your tax obligations are getting more complex.
About Chan & Naylor
Established in 1990, Chan & Naylor has been a trusted partner for thousands of businesses and investors across Australia. Based in Sydney, we provide expert accounting services tailored to your needs. Choosing Chan & Naylor means you’re not just selecting a service provider; you’re gaining a partner aligned with your business and investment goals. You’ll have access to a dedicated client manager supported by a team of accountants that specialises in business and property tax. Contact us today so we can discuss how we can help you.
Disclaimer
This article serves as general information only and may not account for the unique circumstances of individual readers. For personalised and strategic solutions tailored to your specific situation, we invite you to seek professional advice from Chan & Naylor. Our highly experienced team is dedicated to helping you navigate the complexities of Australian taxation, ensuring that your financial strategies align with the latest regulations. Contact us today to embark on a path of informed and customised tax planning for your property investments.
