Many factors affect the survival of your business, all of which you must meet to keep the company afloat. Sales are not the only aspect you should worry about; tax legislation and legal obligations can make or break your business.
The Australian Taxation Office (ATO) requires all companies to keep accurate business activity statements (BAS). If maintained correctly, your business activity statements can make tax management less of a headache.
It is helpful to hire ATO compliance services to assist you in obtaining the best results for your BAS lodgings. But why does it matter to have accurate business activity statements?
Avoid Penalties
Failure to submit an up-to-date and accurate BAS will result in financial penalties. Check the table below to examine the penalty units imposed based on the size of the business:
| Business Size | Penalty Unit |
| Small business (turnover of less than $1 million) | $110 (standard) – for each set of 28 days, a maximum of $550 in fines |
| Medium business (turnover of $1 to $20 million) | Double the standard penalty unit |
| Large business (turnover of more than $20 million) | Five (5) times the standard penalty unit |
| Major global business | Five hundred (500) the standard penalty unit |
The ATO is strict regarding the correct filing of BAS, and while these fines appear severe, you can easily avoid this by being responsible for managing your business activity statements.
Refunds Entitlement
Depending on the ATO guidelines, you owe or are owed money whenever you file your business activity statements. If you fail to keep your company’s BAS accurate, any tax refunds are withheld momentarily until issues are resolved.
You do not want to delay receiving any tax refunds, so be sure to double-check your BAS. But if you are still experiencing problems despite faithfully fulfilling all requirements and guidelines, you might want to consult a business lawyer.
Prevent Costly Mistakes
Your Goods and Services Tax (GST), Fringe Benefits, Pay as You Go (PAYG), and other legal and financial obligations are affected by the information you provide on the BAS to the ATO. Thus, errors can cause a domino effect, resulting in penalties and general interest charges.
You must lodge a newly revised statement if you file an inaccurate BAS. This can consume too much time and resources better used elsewhere.
Business Tracking
Your business activity statement can be used to examine your company’s financial performance history. After all, information included in a BAS are fees, sales, costs, and wages. Historical data is substantial in creating precise forecasts and milestones, on top of business operation optimisation and better budget setting.
Stop Struggling with your BAS, Be Confident with Pacific Accounting
We understand how frustrating it is to deal with your daily business activity statements when you are already occupied with numerous other tasks for growing your company. Allow the professionals at Pacific Accounting to guide you in every step you take to achieve compliance with ATO.
