Preparing and lodging BAS statements is very important for any Australian business registered for GST. Thanks to these reports, you can prove you have met your country’s tax regulations by submitting accurate financial information to the Australian Taxation Office (ATO). For sole traders, business owners or anybody running an organisation, knowing how to do your BAS Lodgement right helps avoid problems and unwanted fees.
If reporting seems complicated or you don’t know where to begin, a lot of people feel the same way. This guide will explain everything you need, such as BAS Due dates, preparing BAS statements, and some regular mistakes businesses make, plus how good BAS services can make everything easier.
By the end, you'll have a clearer understanding of how to meet your BAS compliance obligations and why working with a qualified BAS accountant could be the smartest move for your business.
A Business Activity Statement (BAS) is a document from the Australian Taxation Office that business owners registering with the ATO have to use to declare and pay several taxes. It is necessary for companies that comply with GST in Australia.
The main goal of a BAS is to declare and pay the following particulars:
Goods and Services Tax (GST) that is collected and paid
Withholding employee amounts under the PAYG (Pay As You Go) system
PAYG instalments for your business profit
Making the quarterly Fringe Benefits Tax (FBT) instalments
Fuel tax credits, if applicable
Small and medium-sized businesses must submit a monthly, quarterly or annual BAS, as required by their turnover and by the ATO. Timely and accurate BAS preparation is critical for BAS compliance, as errors or delays can result in penalties and trigger ATO audits.
Regardless of whether you prepare your own BAS or hire someone else, knowing its role and why it matters is the first thing to do for your business.
Knowing BAS Due Dates will help you pay your taxes on time and not be fined by the ATO. If you don’t submit your BAS on time or pay it late, you could receive fines, be charged interest and have your business marked for review. That’s why you need to know your BAS quarter dates or monthly schedule to avoid problems.
The BAS Due Dates are outlined below.
GST can be a special concern for any business with a high annual turnover or special ways of reporting. You should turn the documents in by the 21st of the following month.
Submit by 28 October for Q1 during the July–September period.
October–December release, with the balance due 28 February (to allow for holiday closures)
The deadline for Q3 (January–March) is 28 April
The Q4 share forms are due by 28 July.
Only applicable to businesses voluntarily registered for GST with a turnover under the threshold. The same deadline applies for BAS due dates as for your income taxes.
Extensions Available:
If you file your taxes through a BAS or tax agent that’s on the ATO’s list, you may get more time to pay them. Working with a top BAS accountant means you will always have more time to get your BAS preparation done and reviewed.
You don’t need to feel overwhelmed when preparing BAS statements. Use these clear methods and you will always be compliant, make fewer mistakes and work more efficiently.
Grab each document and record that you need to see the whole financial picture:
Track and organise every transaction you have from sales income.
Whenever you buy something for your business, make sure the invoice includes GST.
Ensure transactions in bank and credit card documents are correct.
Ensure all reported PAYG withholding numbers are correct in your payroll reports.
For convenience, put these papers together by date or type to make future procedures easier.
Combine the GST charged for the period: List down all the sales from the report on which GST was charged.
GST Collected: Add up the net GST paid on business purchases and costs you are entitled to credit for.
GST Paid: GST collected should be greater than GST paid, so that you can pay the ATO, or so they can refund you.
Relying on software reduces the chance that errors will happen while calculating these numbers.
When you hire staff or do it yourself, to pay PAYG tax:
PAYG Withholding: Verify what percentage of an employee’s wages has been taken for tax purposes.
PAYG Instalments: Don’t forget to go over your payroll reports, as it helps you avoid mistakes in the ATO’s PAYG notices.
At the end, sync all your data with your accounting software.
Use your accounting software to:
Match transactions with bank feeds
Identify discrepancies between recorded and actual amounts.
Ensure all income and expenses are allocated to the correct GST codes
Most accounting software now comes with reconciliation tools to save you effort. Do not forget to finish the entire set of BAS reporting labels.
You will find important fields on your BAS form, such as:
G1: All sales are included, both those that must pay GST and those that do not
1A: From customers, you must collect GST on sales.
1B: You have to pay GST on your business purchases when they qualify.
W1 & W2: The total amount of PAYG withholding taken from employee earnings is reported in W1 & W2.
T7: Instalments of income tax, if any, under the PAYG system
You can avoid making mistakes with incorrect labels by using the ATO’s BAS form or your accountant’s software.
Various ways are available for you to submit your BAS.
You can use the ATO Business Portal to submit documents straight online.
You can use online accounting softwares by lodging your BAS Statements within their platform.
A Registered BAS Agent or Tax Agent can file your tax return and usually can request an extension for your filing dates.
Keep your BAS lodgement confirmation and set up your payment before the deadline to prevent facing penalties.
Take care to keep your tax records organised for five years:
Keep your invoices, receipts, payroll documentation and confirmations of deposit.
Save copies of your digital files safely.
Have everything organised so responses to an audit from the ATO can be made promptly.
If you choose cloud storage or software with document management, it’s easier to maintain and support ongoing BAS Compliance.
Filing your BAS statement is your last and most important task for BAS compliance. You have several handy ways to submit your BAS to the ATO, and each one offers its benefits:
Businesses can submit their Business Activity Statements directly through the secure ATO Business Portal.
Fast and convenient: You can complete your application wherever you are online.
Instant confirmation: Receive an electronic receipt as soon as you drop off your tax documents
Follow up-to-the-minute changes: See all your BAS information and payments at once
To sign up, you’ll need a myGovID and either an AUSkey or ABN that’s linked to your account.
With Xero, MYOB and QuickBooks, organisations can directly process their BAS through the same online platform:
Seamless Integration: When both apps are connected, your financial records get updated on their own, limiting how much you need to input by hand
Makes calculation easier: Fast BAS reports and automatic checks decrease opportunities for errors
Time Svaing: All that’s needed to complete your BAS is a few clicks right inside your accounting dashboard
See if you can use your software to file your BAS statements and make sure it’s updated whenever new versions come out.
Many businesses choose to let a trained BAS accountant or registered tax agent take care of their BAS lodgement.
Expertise and Accuracy: Tax experts have training on the latest tax information and what needs to be done.
Extended Deadlines: Lodging your BAS is allowed after the due date if your tax agent applies for additional time.
Avoiding Tension: Avoid serious mistakes and prevent ATO fines.
Time Efficiency: You can run your business efficiently as specialized firms handle your compliance.
Experienced BAS accountants who specialise in your industry tend to deliver the best results, so choose them for the best experience.
Using paper forms for BAS statements is allowed, but most organisations are encouraged not to do so because:
Delayed response from the systems
There is a larger chance that forms will be lost or not arrive on time.
More chance that mistakes occur
The ATO recommends all businesses go online for faster and more trouble-free submission of tax information.
When you work with a BAS accountant, your business becomes more efficient and compliant. Experts handle your business activity statement so that you don’t risk fines and can concentrate on growing your business. Following guidance from your advisor means you’ll benefit from better tax management and control your cash flow.
Correctly making and lodging your BAS statements helps to avoid being charged penalties and avoids the need for ATO reviews. We’ll examine the typical errors and show you how to fix them without difficulty.
What happens: Missing or being late with your BAS filing can lead the ATO to charge penalties and interest which increases your costs and may also influence your credit rating.
How to fix it: Create calendar alerts a month in advance and even better, let a registered BAS accountant take care of your BAS to ensure it is never late.
What happens: Giving ATO incorrect tax numbers can result in extra checks from them, possible changes to previously paid taxes and possible fines. This means your business will be closely watched and could interrupt how money enters your company.
How to fix it: Check all your GST calculations by comparing what you sell to what you buy. Let the accounting software take care of GST tracking and have a BAS professional look at your receipt before you submit.
What happens: If you use a purchase receipt without a tax invoice, you may not be allowed the credit and will likely have to compensate for it along with extra charges.
How to fix it: You need to have valid tax invoices from registered suppliers before you can claim GST credits. Go through your purchases often to make sure you have all the proper proof for your spending.
What happens: The ATO may send you unexpected bills and penalties if you miss PAYG instalments and pay less tax than you should.
How to fix it: Look over your PAYG instalment notices from the ATO and ensure you use the right figures in your BAS each quarter. You should automate your payroll reporting or better yet, have a BAS accountant handle it for you.
What happens: Indicating on your BAS that your business did no trading during a period can prompt an audit by the ATO if you have activity records for that time.
How to fix it: Report every sale, purchase and tax for the time period truthfully during the audit review. Should you be unsure, it is best to check with your accounting software or consult a BAS professional before sending your return.
What happens: Changing from cash to accrual accounting without correcting for the differences can lead to problems when reporting and lodging for tax purposes.
How to fix it: Decide on an accounting method and apply it the same way each time you do your reports. If you switch to a new method, tell the ATO and amend your records according to the update. An accountant in the BAS field can explain how it works to you.
When you know what to avoid and how to resolve the mistakes, your BAS preperation will be done quickly and accurately, keeping your company’s tax processes smooth and efficient.
At Aone Outsourcing, we understand that it can be difficult for many small and medium sized businesses to look after BAS preparation and lodgement on their own. For this reason, our BAS services are meant to simplify things for you and guarantee your business adheres to ATO rules.
Bas Preperation and Review: We take care of preparing and reviewing your BAS to ensure all important GST, PAYG withholding and other tax numbers are correct.
Accurate GST and PAYG Reporting: Ensure your GST and PAYG calculations are correct by using our skilled BAS accountants.
On-tome BAS Lodgement: We make sure your BAS is lodged in time to avoid financial penalties and interest.
Assistance wit ATO Reviews: If an ATO review or audit happens, our experts give you the advice you need to handle everything efficiently.
Quarterly Planning and Reminders: We give you regular reminders through our software and prepare a strategy with you each quarter, so you won’t miss any deadlines.
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Our Client Story: “We rely on Aone Outsourcing to take care of our BAS and they do it without difficulty. Today, I am able to concentrate on how to grow the business, not worrying about tax reports.” — Sarah M., Director of a Small Business in Australia |
Avoid stressing about your BAS and make sure you don’t put your company in danger of facing penalties. Count on Aone Outsourcing for professional, quick and precise BAS services meeting your needs.
Want to ensure your BAS reporting with Aone Outsourcing?
Free BAS Consultation: Find out what you have to do and how we can assist.
Make an Appointment: Talk with a BAS accountant face-to-face.
Get a Price: Receive a tailored service plan according to what your business needs.
Contact us now and kickstart your trouble-free process of preparing and filing the required BAS each time it’s due.
