For many small business owners, BAS lodgment becomes a recurring source of stress simply because it’s not fully understood leading to a scramble every quarter rather than a routine process. However, once you understand what a BAS actually covers, it becomes a far more manageable part of running a business.
A Business Activity Statement (BAS) is how GST-registered businesses report and pay several obligations to the ATO in one combined statement, including GST collected on sales, GST credits on business purchases, PAYG withholding for employees, and PAYG instalments. Consequently, it’s less a single tax and more a periodic reconciliation of several obligations at once.
Most small businesses lodge BAS quarterly, though the ATO may require monthly lodgment for larger businesses, or annual lodgment in some limited cases. Therefore, it’s worth confirming your specific lodgment cycle with the ATO or your tax agent, since it’s set based on your circumstances rather than being the same for every business.
Up-to-date bookkeeping. Every sale and purchase needs to be correctly recorded and categorised, including whether GST applies, before a BAS can be prepared accurately.
Bank reconciliation. Your accounting software needs to be reconciled against actual bank transactions to ensure nothing is missed or duplicated.
Payroll records. If you have employees, PAYG withholding amounts need to be accurately calculated and included.
Purchase records. Business expenses need to be recorded with enough detail to determine how much GST credit can be claimed.
Falling behind on bookkeeping. Trying to reconstruct a quarter’s worth of transactions the week the BAS is due almost always leads to errors and missed claims.
Incorrectly classifying GST-free items. Not everything attracts GST, and misclassifying items in either direction leads to an inaccurate BAS.
Missing the due date. Late lodgement can result in penalties and interest, and repeated late lodgements can affect your standing with the ATO more broadly.
Not setting aside GST collected. Since GST collected on sales isn’t actually business income, spending it as if it were can leave a business short when the BAS payment is due.
The businesses that find BAS straightforward are almost always the ones with consistent, up-to-date bookkeeping throughout the quarter not the ones scrambling right before the deadline. Consequently, investing in a simple, reliable bookkeeping routine pays off every single quarter, not just at tax time.
Registered BAS and tax agents generally have extended lodgement deadlines compared to self-lodgement, which provides valuable breathing room. Moreover, having a professional review your figures before lodgement catches errors before they become ATO queries.
EBATS manages BAS lodgement for small businesses across Australia, keeping bookkeeping current and lodgements accurate and on time, every quarter.
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