5 Common Mistakes to Avoid When Filing Your Business Activity Statement

Don’t let simple mistakes cost you time and money when filing your Business Activity Statement. Learn what to avoid with this helpful guide.

Filing your Business Activity Statement (BAS) can be a daunting task, especially if you’re not familiar with the process. Making mistakes on your BAS can result in costly penalties and delays. To avoid these issues, it’s important to know what to avoid when filing your BAS. This guide will provide you with helpful tips to ensure that your BAS is filed accurately and on time.

Failing to keep accurate records.

One of the most common mistakes businesses make when filing their BAS is failing to keep accurate records. It’s important to keep detailed records of all your business transactions, including sales, expenses, and GST paid and collected. Without accurate records, it’s difficult to complete your BAS correctly and you may end up paying more tax than necessary. Make sure to keep all receipts and invoices organized and up-to-date to avoid this mistake.

Not including all taxable sales and purchases.

Another common mistake when filing your BAS is not including all taxable sales and purchases. It’s important to remember that all sales and purchases related to your business must be included in your BAS, even if they are not subject to GST. This includes sales and purchases made through online platforms or overseas suppliers. Failing to include all taxable sales and purchases can result in penalties and fines from the Australian Taxation Office. Make sure to keep accurate records and double-check all figures before submitting your BAS.

Forgetting to claim all eligible GST credits.

One of the most common mistakes when filing your Business Activity Statement is forgetting to claim all eligible GST credits. This can happen when you don’t keep accurate records of your business expenses or when you don’t understand what expenses are eligible for GST credits. Make sure to keep detailed records of all your business expenses and consult with a tax professional if you’re unsure about what expenses are eligible for GST credits. Failing to claim all eligible GST credits can result in lost money for your business.

Submitting your BAS late or not at all.

Failing to submit your Business Activity Statement (BAS) on time can result in penalties and interest charges. It’s important to mark the due date on your calendar and set reminders to ensure you don’t miss the deadline. If you’re struggling to complete your BAS on time, consider hiring a professional bookkeeper or accountant to help you stay on track. Remember, submitting your BAS late or not at all can have serious consequences for your business.

Not seeking professional advice when needed.

One of the biggest mistakes business owners make when filing their Business Activity Statement is not seeking professional advice when needed. While it may seem like an added expense, hiring a bookkeeper or accountant can actually save you time and money in the long run. They can help ensure that your BAS is accurate and submitted on time, as well as provide valuable insights into your business finances. Don’t be afraid to reach out for help when you need it.