3 reasons why getting your BAS professionally done is a good idea

accountant using a calculator

Whether to hire a professional to handle your accounting and tax is not an easy decision. However, when the tax times come around, it can be daunting for business owners.

In this blog, we’ll cover the business activity statement (BAS) and 3 reasons why getting your BAS professionally done is a good idea.

What’s BAS?

If you’re GST registered, then you need to lodge a business activity statement (BAS). A BAS is a form that businesses registered for GST and for other registrations are required to lodge with the ATO.  It also helps to report and pay your other tax liabilities, including PAYG instalments, PAYG withholding tax, FBT, luxury car tax, wine equalisation tax, and fuel tax credits. 

If you register for an ABN and GST, the ATO will issue you a BAS automatically when you need to lodge. The common BAS lodgement period is monthly, quarterly or annually.

Why getting your BAS professionally done is a good idea?

Most business owners don’t enjoy doing accounting and tax, or they don’t have enough accounting knowledge. They often ended up spending a long time googling how to do certain things, yet following the best practices or staying on top of the regulations. 

Business owners may think hiring a professional is a luxury when doing their BAS, however, the benefits of hiring them might outweigh the costs. These benefits include:

  1. Accountants have been trained in BAS compliance
  2. Getting a lodgement and payment extension 
  3. Fewer corrections to your figures when your tax return is prepared

We’ll decipher what it means in the next few paragraphs.

1. Accountants have been trained in BAS compliance

Accountants or tax agents know how to correctly record all of your income and expenses and minimise your GST payments when it’s due. They know whether the transactions attract GST or not, and will ensure your BAS is prepared accurately. Our Beany accountants often find that we can improve the result of a BAS that has been prepared by a business owner, who may not have a lot of BAS experience.

An experienced accountant can also help you to avoid claiming GST where it isn’t due and help you avoid a costly ATO Audit. 

In addition to this, they may proactively ask the right questions to ensure no GST credits have been missed. These questions include:

  • Do you have any export sales?
  • Have you paid for expenses personally?
  • Do you use any personal assets or expenses for business purposes?

This will ensure you are not paying more GST than you need to or that you are maximising the refund you are entitled to.

2. Getting a lodgement and payment extension

One of the most important reasons is you can get a BAS lodgement and payment extension if you’re registered and linked with an accountant or tax agent. 

DIY BAS lodgers will need to lodge and pay within 4 weeks of the end of the Quarter (if you lodge your BAS quarterly). However, if a registered tax agent lodges your BAS, you will have an additional 4 weeks. 

For example, the June 2022 BAS lodgement and payment are usually due on 28 July, but if an accountant or tax agent lodges for you, the due date becomes 25 August. This means that as well as not having to rush to finalise the figures, you will have almost two months’ pay, resulting in more money in your bank account for longer. You can find the BAS lodge date here if you’re a DIY filer.

3. Fewer corrections to your figures when your tax return is prepared

Every year accountants have to make multiple adjustments to clients’ figures to bring them into line with the tax return requirements. However, having an accountant review your books quarterly will mean fewer adjustments, fewer additional GST adjustments at the year-end, and figures in your accounting software that more accurately reflect your trading position – the latter meaning better data on which you can base your business decisions.

Overall, it’s a no-brainer – keeping your books up to date and accurate, with additional time to lodge your BAS and pay any GST or PAYG due, has to make good business sense!

 

How Beany can help?

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world.

We have a dedicated team of remote accountants to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today. 

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