Perhaps the most critical stage is to figure out how you’ll handle your BAS. Although online accounting software makes it easier to organize the necessary data, you must still take steps to ensure that the information displayed in the reports you generate is accurate.
Hiring a BAS registered agent to assist with your statement has a number of benefits. The procedure of lodging the BAS on your own is not complicated, but it can be time-consuming depending on how well you keep your records. There are several key procedures to follow, and it’s important to remember that they must be completed correctly to avoid fines.
To start, you must reconcile your accounts to ensure that all of your information is correct and recent. This essentially takes a detailed look at your financial records and ensures that your bank statements and accounting information are in agreement.
You must also ensure that all purchases and cash expenses are recorded, that creditor information is correct, and that all outstanding funds are justified.
Gather any accounts with business transactions, as well as receipts and invoices for those transactions and any cash transactions, for this phase. If you’re using Xero, check your general ledger for exceptions and run the Bank Reconciliation Summary.
Enter Missing Transactions
Since software like Xero connects directly to your business bank account, this procedure is substantially streamlined; nevertheless, if you’re doing it manually, it may take some time.
Any missing transactions for which you have receipts and invoices should be recorded. You’ll need a date, the total amount of the transaction, GST, and a description for each.
Add up all of your data
Check and double-check that the information is correct in BAS lodgement with Micro Chilli. You’ll also need to figure out your PAYG, or the amount of tax deducted from employees’ paychecks.
You’ll need to go over your payroll and enter the amount of tax withheld as well as your employees’ gross salary. Enter zeros for this section if you don’t have any employees.
Keep your records up to date and register
After you’ve completed the BAS, make copies of any applicable papers and update your records with the updated information. Then either mail a printed copy of the form, file electronically using the ATO portal, or have your agent lodge your return for you. Make sure you pay what you owe on time or work out a payment plan with the ATO!
While lodging your BAS isn’t a difficult task if you keep accurate records and bookkeeping, having an expert on your team can help you get it properly the first time. That’s all there is to it when it comes to compiling and filing a BAS with the ATO.
While it isn’t difficult, and contemporary electronic systems such as Xero have made it much easier, it is such a crucial element of your business that hiring a professional is frequently a good option. Best of luck!