BAS Boost Your Business

Understanding BAS, also known as Business Activity Statements, is not easy for many business owners in today’s business environment. There are a lot of paperwork counts of things, and the day-to-day business tends to blur out the big picture. But fear not! The management of BAS is critical for the vitality and expansion of your business establishment. Leaning on your BAS helps you make good decisions, better control your cash flow, and unleash your business’s potential. So let’s see how you can transform your BAS into a powerful weapon that will lead you to the top, assisted by Experienced BAS Professionals.

Understanding the basics of BAS

Your BAS is made up of a few essential parts:

• GST: This is the Goods and Services Tax, GST, and as the name suggests, it is a consumption tax. You gather it from your customers and then pass it on to the ATO.
• Income tax withheld: Any time you must pay employees, the income tax from their wages must be withheld and paid to the ATO.
• PAYG instalments: This figure gives you a probable or expected total income tax for the year.
• Fuel tax credits: You can claim fuel tax credits if you utilise diesel or other eligible fuels for business purposes.

The impact of BAS on cash flow

Every business needs cash, and cash flow is the spirit of every business. In this aspect, your BAS can affect your cash flow. When you lodge your BAS, you pay the ATO some money, determining your cash flow. On the other hand, sometimes, when you get lent money, it might help you by providing you with the necessary cash while you wait for a refund.

When it comes to BAS, to keep track of your money flow properly, you must monitor the following:

• Timing your payments: Ideally, you should arrange for the payments to be made directly to the ATO while you receive your income.
• Cash flow forecasting: Employ applications to forecast the cash position for the subsequent planning period to recognise cash shortages.
• Seeking professional advice: This is why an experienced BAS agent can advise you regarding your responsibilities and the methods for handling some of your cash.

BAS and business growth

You may ask yourself how something simple as a BAS can benefit your business. Well, the truth is, your BAS contains many proper records about your business performance. Hence, analysing your BAS data will help you understand your business’s status.

For example, you can:

• Track your sales and expenses: Define trends in sales and costs to make sound business decisions.
• Measure your profitability: Do your cost-price analysis and determine your profit-sensitiveness and acres of profit.
• Secure finance: BAS information is commonly required when applying for a loan from a lender.

Common BAS mistakes and how to avoid them

No one is perfect; therefore, nobody is immune to making mistakes. However, concerning BAS, mistakes are expensive because they translate into a company losing much money to the government. Common mistakes include:

More than incorrect GST calculations sometimes result in under- or over-assessing the GST amount.

• Late lodgement: They come in handy whenever you want to work at a computer late into the night or blend coffee and work to create ‘caffeinated’ work.
• Missing information: To avoid a delay, BAS needs to be fully completed, and several additional documents need to be prepared.

To avoid these mistakes, it’s crucial to:

• Keep accurate records: Be meticulous about recording all your income and expenses.
• Use BAS software: There are numerous tools and programs for preparing your BAS, and you can use them to complete the process with precision.
• Seek professional help: An experienced BAS agent could save you from those common pitfalls.

Technology and BAS

Hence, managing your BAS with the increased technological advancements is much easier than before. These include rudimentary tools such as spreadsheets that this writer will not recommend to mid-size companies or complex cloud-based accounting software. These tools can help you:

• Track your income and expenses: Record the business transactions and prepare the reports automatically.
• Prepare your BAS: Accurately estimate the GST and all the other dues you must pay.

• Lodge your BAS electronically: The BAS can be lodged directly to the ATO.

However, the output of this technology will only be as good as the input that you have given to it. This is also important where the record books are to be used as evidence or other references, as you still need to ensure that these record books contain accurate information or contemporary data.

Seeking professional BAS assistance

If you find it challenging to manage your BAS or need more time, you should seek a BAS agent's services. A good BAS agent can:

• Save you time and effort: If you want to outsource everything to a professional firm, they can assist in BAS preparation and lodgement.
• Reduce your risk of errors: BAS agents know the legislation on taxes and can assist in avoiding mistakes in the selected field.
• Provide valuable business advice: They can provide information regarding your business and its operations to enable you to make a proper decision.

A good BAS agent needs to be chosen. Search for a reliable, experienced, and competent candidate for the position.

Conclusion

Thus, that is it. You might think that BAS is a rather dull topic, but you would be wrong. It is fragile yet vital to the health of your business. You can improve your business and achieve your goals by learning more about your BAS obligations, how to enhance your cash flow, and when to turn to a professional. Remember that the goal of BAS is not only compliance with the tax laws but also the successful utilisation of the information gained.