Business Activity Statements. Who is actually allowed to do your BAS?
They have to be done, the old Business Activity Statements. A necessary evil.
What exactly IS a Business Activity Statement?
Good question, I’m glad you asked.
A Business Activity Statement, or a BAS, is the paperwork required for all businesses who are registered for GST. The statement itself is what the Australian Taxation Office (the ATO) uses to determine whether your business is entitled to a refund or if you’re going to have to pay them.
Essentially it’s a reporting tool so you’re keeping your books up to date with the ATO. And it really does need to be done on time, and correctly - the ATO can follow up and ask for proof and it can be used for a myriad of other tax related reporting.
Can I do my own BAS?
Short answer - yes. You can do your own BAS.
If you want to do your own Business Activity Statement, you totally can. No one is going to mind this at all. However you want to be sure you know what you are doing in order to save having to make corrections or more work for your accountant later.
We personally prefer to do it for you, in order to make sure we keep your end of financial year work tidy, and it helps us stay across how your business is performing.
Doing your BAS for you is another way Kindred Accounting aims to partner with you all year. We love working with Newcastle business owners on their BAS. The BAS process allows us to closely track how your business is performing so we can make recommendations as we go, rather than waiting for a formal meeting or the end of financial year.
Someone with your business can also do your BAS
It’s totally fine and above board to have someone within your business complete your BAS for you. As above though, you want it to be done correctly - so making sure this person knows what they are doing is critical.
Ensuring this person has the necessary training from an accountant or registered BAS or Tax Agent would be a great way to start here - background check them for sure.
You can outsource your Business Activity Statement to a BAS or Tax Agent.
Don’t want to do it yourself? No stress. You can absolutely outsource this one. It is critical that you use someone who is licensed to do this work if you opt to pay someone outside your company to do it for you. You should absolutely check they are registered with the Tax Practitioners Board which you can find at tpb.gov.au/public-register - any licensed BAS or Tax Agent will come up in this search (just make sure you have your spelling correct).
Any registered Tax Agent will show up in this search - so you can make sure your accountant is qualified here as well.
This search would also bring up any breaches of the Code of Professional Conduct and sanctions imposed that are on the public record.
What if the person you’re paying isn’t registered with the TPB?
If the person you are paying, external to your business, does not come up on your search with the Tax Practitioners Board, then they are not registered, and could face a fine of up to $45,000 per offense (or maybe you misspelled their name - do check with them before jumping to conclusions).
Not being registered with the TPB is a big fat red flag and could garner unnecessary attention from the Tax Office for your business.
No one wants the Tax Office watching too closely. Even if you’re doing everything by the book (which we wholeheartedly recommend) the attention of the ATO can cause unnecessary stress and hoops to jump through.
You don’t have to do it all.
We often lump ourselves with a lot of responsibilities, as business owners, but the truth is, we simply cannot do it all. Knowing what you are good at, and delegating what you are not so great at, is a great strength for any leader.
Having an eye on the numbers is absolutely critical to your success and we love working with people who care deeply about the details, but that does not mean you have to do your own bookkeeping or BAS.
If you want to stay in the green and maximise your profits, being on top of your book work is key. Ready to let an expert take care of your accounting?
We’re passionate about empowering business owners to make confident & informed money decisions.
