Every business owner in Australia knows that preparing and submitting a Business Activity Statement (BAS) is an essential duty. This holds true for businesses of all sizes and sectors.

However, the importance of this task may not be immediately clear to everyone. If you are a business owner struggling with the complexities of BAS and broader financial reporting, this blog is for you.

We will examine five critical reasons why business owners must collaborate with well-reputed BAS service providers to submit their data promptly and ensure proper compliance.

1. Paying All Your Taxes

The BAS enables the Australian Taxation Office (ATO) to accurately assess your business’s tax liabilities. The BAS is instrumental in capturing more than just the GST.

One such tax is the Fringe Benefits Tax (FBT), which employers pay on certain benefits provided to their employees. If your business offers these benefits, FBT instalments need to be submitted, and the BAS facilitates this process.

The BAS also deals with the Pay As You Go (PAYG) income tax. Businesses are required to withhold specific amounts from payments to employees and other businesses, which are then reported and remitted through the BAS.

Moreover, settling your BAS liabilities also means reporting to the ATO on various aspects of your business activities, such as overall turnover or the total salaries paid to your staff.

As you can see, there is an array of tax services that you need to enter in your BAS reports to comply with the ATO’s rules and regulations. As a business owner responsible for all aspects of the establishment, it is difficult to keep track of all these taxes.

This is where BAS services come in. The experts providing comprehensive BAS services know which taxes need to be calculated and which can be avoided for your business. Working with proper BAS service providers will help you pay all your taxes properly.

2. To Avoid Penalties

Failing to submit your BAS on time can lead to a series of penalties. For a small business, the penalty is one unit ($110) for every 28 days the BAS is overdue, capped at a maximum of $550.

A medium-sized business, defined as having a turnover between $1 million and $20 million, incurs double this penalty. For large businesses with turnovers exceeding $20 million, the penalty increases to five times the penalty unit.

For major global businesses, the penalty escalates to 500 times the unit. Although these penalties may seem harsh, they can be completely avoided by ensuring your BAS is paid and submitted on time.

If you are too busy to prepare your BAS reports or are not confident enough to calculate them, working with BAS service providers is the best way to go. They provide timely reports with proper calculations to be submitted within the due date to avoid facing penalties.

3. Showing Financial Responsibility To The Banks

Banks and lenders determine how well you handle your taxes to decide if your business is financially healthy. They want to ensure you’re keeping up with your tax payments and other financial responsibilities.

Submitting your BAS on time and correctly shows them you are responsible for your finances, and BAS agents can help you gain this credibility. Timely reports created by these BAS experts will show the banks that you take your financial responsibility seriously and are eligible for loans.

Also, when you apply for a business loan, banks often ask to see your BAS. They use it to check how much money your business makes and to see if you are good at managing your finances, which can help you get better loan terms.

If you’re behind in submitting your BAS, it usually means you’re also late in paying what you owe. This could suggest that your business could be more financially stable. Making sure you submit and pay your BAS on time is essential because banks look at this when deciding whether to give you a loan or how they will charge you for it.

4. Extension On Your BAS Lodgement Dates

If you have yet to get your books ready on time and missed the deadline for your BAS, you can still ask for more time, and the best way to do that is through reputed BAS agents.

This only works if you submit your BAS every quarter. You can get a 4-week extension if you file through registered BAS service providers. They can also help you ask for more time if you need it.

5. Automating The Filing Process

You can send it online instead of filling out your activity statement by hand and mailing it. How? Your registered BAS agent can handle this for you because they can submit it directly to the ATO online.

Final Words

Preparing and submitting a BAS meets tax requirements, maintains your business’s financial health, and contributes to its success.

If you’re looking for expert guidance and assistance with your BAS and other financial duties, consider contacting seasoned BAS service providers today.

Timely and relevant advice can significantly impact your business’s growth and profitability, playing a pivotal role in your success story.