How to prepare Business Activity Statement BAS Statement? | Bare Figures Bookkeeping

Advice On How To Prepare BAS Statement

So you're hoping that Bare Figures Bookkeping is going to give you enough info to prepare your own BAS statement?

You would be right.

They are not difficult if you follow some rules - we have written them for you below. Of course it's not what most people consider fun - but it can save you a lot of money if you do it right!

We would love you to pay us to do it - often we can pay for ourselves in the tax savings.

But if you must - keep reading, follow below and ring us on 0404700581 if you run into trouble.

Steps to completing your BAS statement

1. Are you registered for GST?

Before you start completing your BAS statement make sure you are registered for GST. A quick check with your accountant, in your files or on ABN Lookup on Google (just plug in your ABN) will help you work out whether you are registered or not.

2. Are you using cash or accruals for calculating GST?

Cash accounting for GST - means that you pay GST when money changes hands.

Either your sales invoices are paid into your account (So you charge $500 plus GST to your customer, they paid you). So you must send that GST portion back to the ATO. Or you purchased something and received an invoice, then you paid it. You get to keep that bit of GST.

Confused (please call - Bare Figures is about making it simpler for you!)

Accrual accounting for GST - means that you pay GST when you receive or raise invoices

To use the example above - once you have raised an invoice for a sale, you are liable to pay that GST to the ATO whether your client has paid you or not.

How to check? Look on your BAS Statement - in the top right it will tell you - or ask your accountant - or we can tell you.

3. What period are you preparing a BAS return for?

BAS returns are either: Monthly, Quarterly or Annually. Make sure you are completing it for the right period.

4. Get your records together

Your business records will be bank accounts that have business transactions, receipts and invoices relating to those transactions and any cash transactions (with receipts / invoices).

That's it. Oh wait, here's the fun part.

Record in MYOB, Xero, Saasu or Excel, all transactions above that you have valid receipts and invoices for. Remembering that you will need 4 columns:

- Date of transaction

-Amount in or out

-Amount of GST

-Description

5. Total up your records

Reviewing your records means ensuring, you only claim GST when it is a valid business expense, and have appropriate supporting documents as highlighted in the substantiation provisions of the ITAA and GSTAA, and deductible under Section 8-1, and not specifically excluded from being deductible. See creditable acquisitions in the GSTAA for further details about deductibility.

WOW - that's was fancy - it means you need to find out what expenses are GST Free, and what is Exempt from it. Worth finding in a bookeping manual or your friendly bookkeeper.

Don't just ask your mate - if you get it wrong you can get into trouble!

This will form your GST on purchases on your BAS. Make sure you separate capital from non-capital acquisitions

You must also check you remit back to the ATO the appropriate amount of GST as indicated on your tax invoices. Please ensure you review your invoices and total up the amount of GST collected.

Total sales including GST - add the GST on sales to the total sales.

GST on sales (or GST payable) is the amount above you identified.

These documents are taken very seriously by the ATO and ASIC as a sign of a professionally run business. These become tax records and form part of your corporate identity to the government. So if at all the above is confusing please give us a call to make it easier for you.

6. Prepare you BAS statement

Once you have totals for your GST on sales, GST on purchases you must then ensure you calculate your PAYG.

PAYG is the system the ATO uses to calculate the tax that your employees must pay on their incomes. You, the employer, hold onto that tax and then send it off the ATO on their behalf.

Review your payroll records for staff (if you have no staff, just put in little zero's) and enter the amount of tax you have withheld.

7. Update your records

Once you have completed your BAS, it is important to make sure it matches with your electronic records. Once you lodge the BAS statement the ATO will be expecting the payment you have calculated, or will send the amount they must pay to you once it is lodged. Take a copy for your records.

8. Lodge and pay

Either mail to the ATO, set-up your Tax Portal access online through the ATO's website, or give it to your trsuty accountant or BAS service Providing bookkeeper to lodge. Make sure you pay when you lodge or give them a call to let them know when you will

9. File away your records

Save your electronic files on a spare disk for backup. File away your hard copies with the name of the quarter on them and breathe a sigh of relief! your done.

A professional bookkeeper from Bare Figures Bookkeeping can efficiently process your accounting requirements and produce your BAS statement without you having to lift a finger. We come to your office or we can process your information from ours. We’ll even SMS you when we’re done.

Bare Figures Bookkeeping - Proactive financial management for the price of a bookkeeper

When you contact Bare Figures Bookkeeping we’ll be able to find out which of our bookkeepers would be best suited to your business.

Who are we?

Bare Figures Bookkeeping is a leading provider of bookkeepers and bookkeeping services to the Sydney Metro, Inner West and Sydney CBD areas in New South Wales, Australia. Bare Figures Bookkeeping is based in Circular Quay, Sydney and services many satisfied bookkeeping clients in the Sydney Inner West, Eastern Suburbs and Sydney CBD area. Bare Figures Bookkeeping is a BAS Service provider, MYOB Professional Partner, Xero Partner and Saasu Partner.