BAS BILLS AND BUSINESS CHAOS

Let’s talk about the Business Activity Statement (BAS). If you’re a small business owner you need a small business accountant to help you with this, and you probably already know that BAS isn’t some exciting new fitness craze or the latest acronym Gen Z is using to confuse everyone. Nope, it’s a mandatory form you have to lodge with the Australian Taxation Office (ATO) to report on things like GST, PAYG withholding, and other tax obligations. In other words, it’s the government’s way of making sure you’re coughing up your fair share.

What’s the Deal with BAS?

If you’re registered for GST (which you should be if your business turns over $75,000 or more per year), you must lodge a BAS, typically every quarter. Your BAS tells the ATO how much money you've collected in GST, how much you've paid, and how much you owe them (or, if you’re lucky, how much they owe you—rare, but it happens).

Failing to lodge on time can result in penalties, interest charges, and a whole lot of stress. And let’s be honest: the ATO is not known for its sense of humour when it comes to late payments.

Why Small Businesses Struggle with BAS (and How to Fix It)

The problem? BAS reporting is like doing your own dental work—it’s painful, time-consuming, and best left to the professionals. Between tracking receipts, managing invoices, and trying to remember where you left that one piece of paper from three months ago, it’s no wonder so many small businesses fall behind.

But fear not! The ATO has shared some handy tips to help you stay ahead of the game and avoid last-minute panic (or worse, a very stern letter in an intimidating envelope). Let’s break them down:

1. Keep Digital Records (Ditch the Shoebox)

If your record-keeping system currently involves a shoebox, some wishful thinking, and the vague hope that the ATO won’t ask questions, it’s time to upgrade.

The ATO recommends using digital tools to track income and expenses. Cloud-based accounting software like Xero, MYOB, or QuickBooks can make this process ridiculously easy. Plus, having everything online means no more panicked searches through drawers when BAS time rolls around.

2. Set Up a BAS Savings Account

GST is not free money (tragic, I know). If you’re collecting it from customers, you will eventually need to hand it over to the ATO. The best way to avoid a cash-flow disaster is to set up a separate account where you regularly stash away your GST portion.

Think of it as a ‘No Touchy’ account—except for when it’s time to pay the taxman.

3. Use the ATO’s Online Services

The ATO’s online portal lets you lodge your BAS, check due dates, and even set up payment plans if things get a bit tight. It’s like online shopping, but instead of getting a package in the mail, you just get peace of mind (which, honestly, is almost as good).

4. Stick to BAS Deadlines (or at Least Plan Ahead)

BAS is due quarterly, which means you can’t say “I’ll do it next week” indefinitely. Here’s the breakdown:

Quarter 1 (July–September): Due 28 October

Quarter 2 (October–December): Due 28 February

Quarter 3 (January–March): Due 28 April

Quarter 4 (April–June): Due 28 July

Set calendar reminders, sticky notes, or train your dog to bark aggressively at you a week before each deadline—whatever works to keep you on track.

5. Get Help If You Need It

If BAS reporting is sucking the joy out of running your business, consider outsourcing it to an accountant or bookkeeper. They deal with this stuff every day and can help ensure you’re lodging correctly, maximising deductions, and not making costly mistakes.

BAS: Not Fun, But Totally Doable

Look, BAS isn’t going anywhere, but managing it doesn’t have to be a nightmare. With a few smart habits, some digital tools, and maybe a bit of professional help, you can avoid the stress, stay compliant, and get back to doing what you do best—running your business (and hopefully making money while doing it).

Still struggling? We get it. Hills Small Business Accounting Hobart is here to help small businesses just like yours keep their finances in check, minimise tax headaches, and stay on top of their obligations. Need a hand? Let’s chat!

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.

Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03) 6273 7800, or email info@hillsaccounting.com.au.