Business Activity Statements – Common mistakes
Does the words Business Activity Statement make you groan? If you are a small business owner registered for GST then you understand what I’m talking about. Every three months you have to report to the ATO what you are collected and paid in GST, and make a payment or receive a refund accordingly. Those three months always seem like it comes around quick. According to the ATO it is the most common area for mistakes. These mistakes are usually very easy ones to make, and are generally just an omission, or error. I have a lot of clients who prepare their BAS themselves, and I don’t discourage them to do this. It’s a great way to get to understand your business better and keep your finger on the pulse.
So if you do lodge your own BAS here’s the most common mistakes made:
- Check that each invoice is only recorded once.
- Check the sales and expenses are for the correct tax period. The quarters are as follows – July-Sept, Oct-Dec, Jan-March, and April-June. With the due date generally being the 28th of the following month.
- Check you report the figures on the BAS in whole dollars. Using a decimal point on a BAS could mean you are paying a lot more than needed.
- Check all the expenses claimed are business and not personal.
If lodging your own BAS does not interest you, Start Fresh Accounting can help. By engaging a Tax Agent to prepare your BAS you also are entitled to an extension. Giving you more time to prepare comes in handy when you run a busy business. Book a free consult today to discuss you BAS options.