Taking charge of your own Business Activity Statement (BAS) is commendable. It shows you’re proactive about managing your business’s financial affairs. But it’s important to ensure your BAS is accurate and compliant with tax regulations. Let’s take a look at why accuracy matters and the potential consequences if it’s wrong.
Your Responsibilities with DIY BAS!
Managing your own BAS comes with responsibilities. The Australian Taxation Office (ATO) expects businesses to accurately report their financial data in their BAS submissions. Mistakes can lead to fines and penalties.
How to Get it Right
- Understand Your Tax Obligations – Know what your business needs to report, including GST, PAYG withholding, and other relevant taxes. Familiarise yourself with ATO guidelines to meet all requirements.
- Maintain Accurate Records – Keep detailed records of income, expenses, and other financial transactions. Good record-keeping helps ensure your BAS figures are accurate and provides supporting documentation if needed. Make sure that you are checking the ABN on invoices you receive from suppliers, to ensure they are registered for GST. You can’t claim GST you haven’t paid.
- Seek Professional Advice – If you’re unsure about any aspect of your tax obligations, consult a BAS agent, tax advisor, or accountant. Professional advice can ensure your submissions are accurate and compliant.
- Submit On Time – Avoid late lodgement penalties by submitting your BAS on time. Adhere to relevant due dates to stay in the ATO’s good books.
- Rectify Errors Promptly – If you find mistakes in your BAS submissions, correct them promptly by lodging a revision. The ATO generally appreciates businesses that proactively address their errors.
The Consequences of Mistakes
Despite your best efforts, mistakes can happen. The ATO usually takes a reasonable approach if errors are unintentional and corrected quickly. However, repeated or deliberate non-compliance can lead to harsher penalties, including fines and audits.
The ATO uses various methods to detect and address non-compliance, like data matching, audits, and reviews. If your BAS raises red flags or discrepancies, you may face further scrutiny.
It’s crucial to ensure your submissions are accurate and compliant with tax laws. Refer to the ATO website for guidance if you need to. Understand your tax obligations, maintain accurate records, seek professional advice when needed, and submit on time. By doing so, you can minimise the risk of fines and penalties, maintaining your business’s integrity and a positive relationship with the ATO.
Ready for a Hassle-Free BAS Experience?
Managing your own BAS can be rewarding, but it also comes with its challenges. If you’d like to explore a stress-free way to handle your BAS, why not let Ask Valerie take care of it for you? With professional expertise and a personal approach, Ask Valerie will make sure your BAS is accurate, compliant, and submitted on time.
Contact Us Today!
Don’t let BAS compliance weigh you down. Reach out to Ask Valerie now for a consultation and see how we can make your BAS process smoother and more efficient.
Call Valerie on 0437 336 574
Email at [email protected]
Visit our website https://askvalerie.com.au/contact-me/
Let’s simplify your business finances together!