You could schedule some time to discuss outstanding items and any questions or concerns they might have, so everyone’s on the same page. But, if you standardise how you collect data – with a single system or process – you don’t need to spend as much time typing up transaction details or emailing clients. Start your automation journeys with something small – like automating recurring invoices on behalf of your clients. That way, you don’t need to be there to hit ‘send’ every month, and the invoice goes out automatically. From here, you can automate invoice follow-ups to help your clients get paid on time and maintain healthy cash flow.

Who needs to lodge a BAS in Australia?

While PDF invoices sent via email need to be downloaded and re-uploaded to accounting software. At First Class Accounts Wanneroo, we specialize in helping businesses like yours streamline their BAS lodgement process. With over 27 years of experience in financial services, we’ve put together this step-by-step guide to make your BAS preparation easier. As a business owner, staying on top of your BAS (Business Activity Statement) obligations is crucial to maintaining compliance with the ATO and keeping your finances in order. Whether you’re lodging your BAS monthly, quarterly, or annually, preparation is key to ensuring the process is stress-free and accurate.

Step 6: Reconciling accounts regularly

• Every year, accounting and bookkeeping practices have to take care of tax preparation.
• Otherwise you can lodge via the Business Portal or myGov depending on your business type.
• You could schedule some time to discuss outstanding items and any questions or concerns they might have, so everyone’s on the same page.

Every transaction needs to be accounted for before you can begin tax return preparation. So, when clients hold out on providing receipts or leave you without clear documents, it makes the business tax preparation process more time-consuming. As Xero certified advisors we can also quickly lodge activity statements on behalf of their clients from within Xero. Having all the information in one place eliminate double-handling of data and means they spend less time chasing data. This enhanced visibility allows advisors to collaborate more closely with their clients, and help them plan ahead and manage cash flow to meet their obligations.

Step 8: Reconcile Accounts and Complete the BAS Form

After Xero is authorised, activity statements can be viewed on the BAS dashboard. Data from Xero, including GST, is automatically updated into the BAS report, and adjustments can be made manually. After completing the required fields on the activity statement hit the Lodge to ATO button to submit the completed BAS to the ATO. Most businesses that lodge their own BAS choose an online option. Default rates come with Xero for inventory items, contacts and accounts. There doesn’t seem to be any declaration from the client to authorise us as tax agents to lodge the statement.

What taxes can you report and pay using your BAS?

Once you are set up, you can lodge your Activity Statement with the ATO from within Xero. Users who are approved to lodge the BAS for an organisation must have this User Permission ticked. If your turnover is less than $10 million, you may be able to lodge annually – but you’re still required to pay a quarterly instalment of the GST you owe. How often you complete a BAS – and when you must submit it – depends on how much business you’re doing. A BAS can also be used to record other taxes and credits, such as fringe benefits tax, luxury car tax, wine equalisation tax, and fuel tax credits.

Repetitive, admin-intensive jobs are ripe for automation because they keep you from doing deep, strategic client work. Each quarter, GST-registered small businesses submit a business activity statement (BAS) to the Australian Tax Office (ATO). The BAS will show how much GST was collected from customers, and how much GST was paid to suppliers.

• With software like Xero you get all of these benefits, plus a direct connection to HMRC so that tax returns can be filed online.
• Xero Tax is the only software package your practice needs – you can use it for all of your clients.
• Using practice management software will help everyone keep on track, and make it easier to see where you’re up to.
• Any business can register for GST, but you’ll have to do it once you pass a certain income level or want to claim fuel tax credits, or provide taxi services.
• Besides checking that the BAS is accurate, these professionals can give advice on improving business profitability.
• Hubdoc extracts the transaction information and captures it in Xero, ready for you to match and code.

It mostly comes down to whether or not your accounts are up to date. Check that the Xero statement balance reflects the balance of that account in your internet banking. The method you use to lodge your BAS will determine how you receive statements in future. For example, if you lodge through the Business Portal, your next statement will be available in the Business Portal. You can only use this service if you have nothing to report for the period and need to lodge your BAS as ‘nil’.

How to prepare a BAS statement for small business effectively before the given deadline?

A lot of Australian businesses have an accountant or bookkeeper who can take care of their BAS and tax obligations. Besides checking that the BAS is accurate, these professionals can give advice on improving business profitability. So then when the BAS report is ran, the sales figure was reported even though physical cash payment has not yet been applied. I started in the business nearly a year ago and our BAS has always been lodged by an external accountant. Explore all features today and see how our software can make your business’ compliance run more smoothly.

Step 4 – Check your connection is authorized with the ATO – click Check connection and get activity statements. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided. Go to the second tab called “bank statement” and select the date range for the quarter. For this reason, there are many advantages to hiring a registered BAS Agent including enjoying a an extra 4 week extension for lodgement and payment. Some of the information on this website applies to a specific financial year.

Client information is stored in one place and shared between a business’s Xero accounts and Xero Tax. Tax gives us good follow up and lodgment control ‘in one place’ each quarter for all BAS clients. I see a whole lot of businesses going ahead pressing buttons and 9 simple steps to prepare your bas using xero lodging BAS returns with GST on everything from Insurance to Interest in our future.

GST-registered businesses must lodge BAS monthly, quarterly, or annually, depending on their turnover and ATO requirements. The BAS reconciles GST collected on sales with GST paid on purchases, determining whether you owe the ATO or are entitled to a refund. It also includes employee tax withholdings and instalments toward your annual tax liability. Most accounting software will generate an audit report detailing all the transactions included in the BAS. Use this to ensure all your sales and expenses for the period have been entered. Double-check that data against your bank statements, too – this is called bank reconciliation.