Businesses that are on top of their record keeping earlier will be better prepared for lodging their BAS, according to the Australian Taxation Office (ATO).
The ATO has advised that regular record keeping can help small businesses manage their cash flow and enable them to receive their refunds faster.
To help keep small businesses on track, the ATO has published the following tips.
- Keep all records that are used to prepare your BAS. These records must be kept for five years.
- GST credits can only be claimed for business purchases that include GST in the sale price from suppliers that are registered for GST.
- For any purchases more than $82.50, ensure that you have a tax invoice.
- Use whole dollars on your BAS when filling in the amounts. The ATO advises you leave out cents and to not round up to the nearest dollar.
- Use the ATO’s online services to lodge your BAS. This will prompt you to correct any errors and allow you to check whether you’ve completed your BAS correctly.
- You can make it easier to pay your BAS and manage your cash flow by putting money aside in a separate bank account for the GST you receive.
- Contact the ATO as soon as possible before your BAS is due if you think you might not be able to pay. Even if you can’t pay, you still be required to lodge your BAS on time.
For more information, please visit the ATO website here.
By TaxAssist Accountants
Last updated October 2018