BAS reporting deadlines have a habit of sneaking up on us, leading to a scramble to get the statement in on time, followed by another scramble when the payment is due. However, it doesn’t have to be this way; by adopting a clearly-defined strategy when submitting and budgeting for your BAS, you can make sure that you stay on top of this task.
Read on for a few tips for small businesses.
Switch to Monthly Reporting
Traditionally, a BAS is submitted quarterly and then the payment due is required to be delivered just under one month later. This is fine, but for companies struggling to stay on top of the tax due, it divides the payment into four sizable sums each year, which can be overwhelming.
For business owners who are struggling to budget, switching to a monthly reporting program forces you to accept a budgetary framework. It means more instances of reporting but it helps you to keep on top of payments.
No Nasty Surprises
Knowing how much you will have to pay at the end of each submission period is vital. No one wants a nasty surprise that sends your business over budget. Get to know your deductibles, spend time personally going over profits and losses, and give yourself a realistic, ballpark figure for each month or each quarter, eliminating any shocks or surprises.
Utilising SBR Software
In order to make it easier for businesses to submit their BAS on time and to budget for the necessary payments, the government provides Standard Business Reporting – SBR – platforms. Introduced in 2010, these platforms were designed to simplify the process and introduce standards across the board.
Implementing SBR software within your own BAS reporting and payment structure gives you an effective method for staying on top of the payments and for developing a flexible budget to accommodate these payments.
If the Worst Happens…
It is sometimes possible to apply for a two week deferral on both the submission of your BAS and also the payment of what is due. This should not be relied on as a standard practice – as there are a range of criteria that you must meet if you are to qualify for this deferral.
However, for small or medium-sized business owners, the deferral can provide a little bit of breathing space within which to get your house in order. As discussed, this is to be used as an emergency last resort only.
General advice warning This article does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters and consult your accountant or financial adviser.