Running a business comes with plenty of competing priorities. Customers, staff, suppliers, cash flow and growth can quickly take centre stage, while administration gets pushed further down the list.
But one obligation that deserves consistent attention is your Business Activity Statement (BAS).
For many Australian businesses, BAS is an important part of staying on top of GST, PAYG withholding and other tax obligations. More importantly, keeping your BAS accurate and lodged on time can be a good indicator of the overall financial health and organisation of your business.
Leaving it until the last minute can create unnecessary stress, cash flow pressure and the risk of mistakes. With the support of a good bookkeeper and accountant, BAS can become part of a well-managed financial routine rather than a quarterly headache.
Here are seven tips to help keep your BAS under control.
- Don’t Treat BAS Money as Business ProfitOne of the most important disciplines is remembering that GST collected from customers is generally not money you should simply consider available to spend.
Consider regularly setting aside amounts for GST and other tax obligations in a separate bank account. This can help reduce the shock of discovering a large amount is payable when BAS time arrives.
- Keep Your Records Up to DateAccurate bookkeeping throughout the month or quarter makes BAS preparation significantly easier.
Invoices, receipts, supplier payments, payroll information and business expenses should be recorded consistently. Waiting until the BAS deadline to sort through months of transactions increases the likelihood of missing information or making errors.
- Know Your DeadlinesBAS lodgement dates should be treated like any other important business deadline.
Put them in your calendar and give yourself enough time before the due date to review the figures, clarify questions and arrange payment.
Being prepared early can also give you greater visibility over upcoming cash flow requirements.
- Reconcile Your Accounts RegularlyBank and credit card reconciliations help ensure your accounting records reflect what has actually happened in your business.
Regular reconciliation can identify duplicate transactions, missing expenses, incorrect allocations or payments that have not been properly recorded.
A small mistake repeated over several months can become a much bigger problem later.
- Use Your BAS as a Business Health CheckDon’t view BAS purely as a compliance exercise.
The information behind your BAS can tell an important story about your business. Are sales increasing? Are expenses climbing? Is payroll becoming a larger proportion of revenue? Is cash flow getting tighter?
Reviewing these trends with your accountant can help turn compliance information into useful business insights.
- Don’t Ignore Cash Flow ProblemsIf you know you may have difficulty meeting a BAS obligation, don’t simply ignore it and hope the problem disappears.
Speak with your accountant early. Understanding the size of the liability and your available options is far better than discovering the problem after a deadline has passed.
Early conversations also allow you to look at the underlying cause. A tax payment problem may actually highlight pricing, profitability, debtor collection or broader cash flow issues.
- Build the Right Financial TeamPerhaps the most valuable tip is recognising that you don’t have to manage everything yourself.
A bookkeeper can help keep your day-to-day financial records accurate, organised and current. Your accountant can provide broader tax, compliance and business advice while helping you understand what the numbers mean.
When your bookkeeper, accountant and business owner work together, there should be fewer surprises and better information available when important decisions need to be made.
Make BAS Part of Good Business Management
Staying on top of BAS is about much more than meeting a tax deadline. It is about building good financial habits, maintaining accurate records and understanding where your business stands.
Being organised and lodging on time can reduce stress, improve cash flow planning and give you greater confidence in your financial position.
Most importantly, quality professional support can make all the difference.
Don’t wait until BAS is due to start thinking about your numbers. Work with your bookkeeper and accountant throughout the year so your obligations are managed, your records stay current and you have the financial information you need to keep moving your business forward.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
