Today is devoted to a very important bookkeeping matter – preparing, reviewing and lodging a BAS! This information is critical because you don’t want to overpay GST or miss claiming any expenses. There is a lot to remember and checks to go through, but once you’ve got your head around them and you understand the process, the lodging will be a breeze.do my (tax) invoices say the right things?
In this episode, I’m going to explore how to prepare, review and lodge a BAS, along with all of the tasks that must be completed before you submit it.
A Business Activity Statement (BAS) is lodged to the ATO each month, quarter or year depending on your lodgment cycle. A BAS is used when you’re registered for GST and you have to report to the ATO the GST that you collected on your sales less any GST credits from GST on expenses that you’ve paid.
It’s good to remember that if your GST turnover is less than ten million dollars you can use a simplified version with less information called a ‘Simpler BAS’.
I’ll run you through exactly what a BAS is, GST, what to do if you have employees, prepayments on income tax, the difference between a BAS and an Installment Activity Statements (IAS), the different types of BAS and IAS cycles, and the key areas of a BAS and IAS you need to check before lodging to the ATO.
If you miss your BAS lodgement date you could have to pay a hefty late lodgement fine AND late payment penalties – so make sure you add it to your calendar today!
Previous episode mentioned:
What the heck is GST and when should I register?
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