Many small to medium sized businesses complete their own BAS statements to save on cost. This can come at a price, though. You may be exposing your business (or yourself if you’re a company director) to penalties or unexpected debt.

Bookkeeping Matters can manage your reporting and ensure accuracy and prompt lodgment of your BAS, IAS, TPAR and Annual Payment Summary Report with the ATO.

We offer expert advice, guidance and practical applications to help you meet your obligations with complete confidence.

  • Registered BAS Agent – Registration No. 91642006
  • Bookkeeping Matters maintain our certification in primary accounting software solutions

Compliance

Protect your business from penalties and sanctions by leaving your statutory reporting obligations to us. We provide transparent, on-time solutions to ensure your business is meeting taxation requirements through well organised, accurate data.

Statutory requirements

All businesses are subject to statutory and regulatory requirements under Australian law. This can be a daunting and complex area to understand, but we can guide you through your obligations and support you in fulfilling them.

It’s best to book a consultation to find out how these requirements apply to your individual business, however, here are a few of the most frequently asked questions we receive:

What is GST?

Goods and Services Tax (GST) is a broad-based tax of 10% on most goods and services transactions in Australia. It is refunded to all parties other than the final consumer.

Am I required to register for GST and how should I do so?

If your business has an annual turnover of more than $75,000 excluding GST (or $150,000 for not-for-profits) you must register for GST. Taxi and limousine drivers must register for GST regardless of their turnover.

If you meet this criterion, you can register for GST, using your Australian Business Number (ABN). If don’t already have an ABN, you will need to apply for one with the ATO directly, or through us.

What are the disadvantages of not having an ABN?

If you don’t have an ABN, you will be disadvantaged because other businesses will be required to withhold 49% of their payment to you.

 

What is a BAS?

The Business Activity Statement (BAS) is a business tax reporting requirement issued by the ATO on either a monthly or quarterly basis. It is used for reporting and paying GST, PAYG installments, PAYG withholding tax and other obligations.

What are input tax credits?

You are entitled to an input tax credit for the GST included in the price you pay for an acquisition, or the GST paid for an importation if it is for use in your enterprise.

What are PAYG installments?

Pay As You Go (PAYG) installments are the amount you pay directly to the Commissioner of Taxation to meet your income tax and other liabilities requirements. Typically, they are paid quarterly.

Do I need to keep receipts and invoices?

To claim GST credits, you must have a valid tax invoice for the goods and services that you purchase for your business. However, you can claim GST credits for business purchases up to $82.50 without holding a tax invoice as long as you keep records that support the claim (for example, cash register dockets or receipts).

What is the accrual basis of accounting?

Under the accrual basis of accounting, revenue is recorded in the period in which your business sells goods or services, regardless of whether you actually receive the cash.

Similarly, expenses are recorded in the period they are incurred, not necessarily when they are paid.

What is the cash basis of accounting?

Under the cash basis of accounting, income is not recognised until it is received, and expenses are not recorded until they are paid.

Businesses using the cash basis of accounting, record the GST collected and paid in the accounting period.

Most small businesses use the cash basis of accounting. However, the accrual basis provides a more detailed picture of business activities and informs better decision making.

How do I know which accounting method to use?

A business with an annual turnover of less than $2 million can choose their preferred method of accounting. Organisations with an annual turnover of over $2 million must use the accruals method.

How do I know if my bookkeeper is a registered BAS agent?

A bookkeeper must not provide a BAS service for a fee unless they are registered with the Tax Practitioners Board (TPB). To find out if a bookkeeper is a registered BAS agent visit the TPB website.

How much do you charge?

Before providing an estimate, we will meet with you to discuss the condition and complexity of your books. During this free consultation, we will determine the kind of bookkeeping service you require, and confirm our mutual expectations and obligations.

We will then arrange a time to review the health of your company files, which may take up to two hours and will incur a fee.

From this review, we will recommend the best structure and frequency of bookkeeping for your business and provide a schedule of fees.

Non-compliance

We can help you avoid non-compliance penalties by ensuring you’re fulfilling your statutory reporting obligations on time.

The Australian Taxation Office (ATO) may apply a failure to lodge (FTL) penalty if you do not submit the required statement within the prescribed timeframe.

Penalties to Avoid

By engaging Bookkeeping Matters, you mitigate exposing your business to these easily avoidable penalties for:

  • Late lodgment
  • Providing misleading or inaccurate information
  • Failing to withhold the required PAYG amount.

Implications for Directors

Company directors are personally liable for PAYG withholding and Superannuation Guarantee Charge (SGC) obligations. Therefore, it is critical that you are aware of your responsibilities, and ensure you meet them, to avoid personal and financial distress.

We can advise you on how to meet these requirements, or you can find out more on the ATO website.