Small Business Bookkeeping: Avoiding Mishaps When Lodging Your BAS
Posted on: 3 March 2021
If you are not familiar with business accounting processes, you should think about using external bookkeeping services. This is the best approach to preventing errors in the management of the various financial aspects of your company. Keep in mind that mistakes and oversights in bookkeeping will cause problems in aspects like cash flow, profit margin and taxation. One of the important issues for which you should choose professional bookkeeping is the lodging of your business activity statements. If the BAS is not lodged properly, there will be significant penalties. Here are some guidelines for preventing mishaps in business activity statements management.
Avoid Lodging Late
There are strict timelines that are put in place for lodging your BAS. The deadlines must not be ignored because there will be a financial penalty. Also, there might be an applicable interest for the amount, leading to significant losses for your business. Additionally, you should be aware that each late statement will be fined separately, so the amount can be high if you ignore the lodging obligation. The cut-off date will depend on the approach taken for the process. For instance, a different deadline might apply for professional BAS agents and individual filers. It is advisable to lodge the statement even in cases where your business does not have the money to pay for the applicable tax. As long as the BAS is sent in, you will not be penalised for late lodgement.
Use Speciality Software
Automating most of the BAS work can minimise mistakes and inconvenience. In simple terms, if you choose to handle the accounting work manually, you will require more time and labour for completion. Moreover, the risk of human errors will be high. Therefore, you should choose suitable accounting or bookkeeping software for managing your financial data. Ensure that the software is SBR-enabled. As implied, this feature allows for standard business reporting (SBR), minimising most of the manual work required for lodging your BAS. This will limit the risk of missing a deadline, and you will have lower long-term accounting expenses.
Confirm Tax Codes
It is not uncommon for inexperienced business owners to make mistakes when handling the business activity statement. The most common problem is the use of an incorrect tax code. These codes are crucial because they indicate the type of transaction being referenced in the bookkeeping records. If the details are wrong, the statement will be erroneous and could cause auditing problems. You should avoid mishaps by checking tax codes and confirming before entering information into your accounting system.
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