BAS is an important part of your business finance management that helps you profit and grow. Fortunately BAS can be a relatively simple seamless process when you work to a planned schedule and get completely up to date with ATO requirements. At Capify, we know how important it is to your overall business finance position to get BAS right. Capify’s top tips for BAS preparation are:
Gather your financial forces
Data gathering is your first step to blemish-free BAS. Get organised early and pull together all your business finance records. Business transaction receipts and invoices, creditor information, outstanding funds and bank statements: every financial record must be accurate and reconciled. Any exceptions or missing transactions will have to be justified. If Xero is on your team, get this program running a bank reconciliation summary for you.
Look for red flags
See how your current BAS stacks up against your previous BASs. If anything sticks out as being unusual or different, get onto it quickly and do a thorough double-check. Make sure all corresponding records match too, like your bank balance with your bank statement and balance sheet with your BAS.
Cash or accrual: confirm your GST accounting method
It is pretty simple really. If your business is GST-registered and earns less than $2million you need to choose a method to account for your GST:
Accrual: if your business is cash-based then accrual is the way to go as you get to claim GST back on purchases instantly. This can work wonders with keeping your business cash flow healthy.
Cash-based: using this method, your BAS accounts for GST covering the period in which you receive or pay for your sales and purchases. So cash flow management is much easier.
Whichever GST accounting method you use, be sure to update this in your accounting system so you print the right reports.
Put experts on the case
One of the easiest ways to get impeccable BAS is to put a specialist service like a professional accountant or bookkeeper to work on your behalf. BAS is part of your big business finance picture and you need to have utmost peace of mind that your financial position has watertight protection. Accounting or bookkeeping specialists will plan your BAS well ahead of compliance dates, ensure all data is reconciliation-perfect and take care of lodgement. So you can keep your focus on your business while your BAS is taken care of. There are other perks to working with a registered BAS agent too. You will earn yourself an extra month to lodge and pay your BAS. That’s what we call a business finance bonus.
BAS doesn’t need to be taxing but a bit of specialist help goes a long way. Sometimes even with the best planning, you can find your budget for taxes falling short of covering your BAS commitments. Here is where a small business loan from Capify can help you cover your BAS and protect your business credit score. BAS is an important part of broader business finance to ensure you enjoy top protection, returns and growth. To further grow your business, Capify have flexible Business Loans that are specially tailored for small business. Get in touch with us today to set your business on a powerful growth trajectory.