You’re nearing your tax deadline. You scramble to find your business receipts and records. However, you cannot find them all.
You realize that you never kept a full record of your business activity. But your business activity statement requires a full record for completion.
What do you do?
In this case, there’s nothing you can do. All you can do is fill out the form to the best of your ability. However, it should serve as a lesson. Ensure that you keep impeccable business records throughout the year before filing.
Accurate business records will help you submit the document faster. This article will show you the easiest way to submit a business activity statement form. Read on if you wish to avoid a tax headache.
Establish an Accounting Method
To keep the best records, choose between cash-basis accounting or accrual accounting. Accrual accounting occurs when you declare business revenue earned instead of earning revenue in cash. On the other hand, cash-based accounting notes revenues when you pay cash or receive cash.
- Note: If you own a smaller business, you can choose between an accrual accounting or cash-basis accounting. However, larger companies must receive permission from the Australian Tax Office (ATO) to use the cash accounting method.
To stay more organized, open a separate accounting to save for your goods and services tax (GST).
Create a Worksheet
You have two choices when calculating GST taxes on worksheets: the accounts method or the worksheet calculations method. If you choose the accounts method, you can use the information from your accounting information. For the worksheet calculation method, you must list GST amounts, including any items not pertaining to GST.
- Note: Use the accounts method if you’re a small business with an installment arrangement or a simpler business activity form.
Completing the Sheet
To complete the sheet, list the items accordingly at the beginning of the sheet:
- G1: Include any sales in this section. Exclude non-related items such as gifts or dividends.
- G2: This is the export sales category. It includes items that are not GST-related. For example, list anything pertaining to insurance or shipping.
- G3: This is another non-GST category for food and beverage sales.
Omit the GST in G1 from your sales if you’re using the accounts method.
Also, deduct the appropriate items from your taxable income. For example, you can deduct business purchases from your tax balance. You can deduct almost any item that you use for your business, such as:
- Office supplies
- Fixtures and furniture
Consider those items depreciable assets that you can deduct from your balance.
Completing the Process
Sign the document after calculating the appropriate deductions and tax balance. Then send the document and the payment or you can submit your document online.
Business Activity Statement
A business activity statement requires stellar record-keeping before completing the form. A tax professional can also help if you have trouble filling your statement.
A sound accounting method is the most important factor when filing a business statement. You have a wide range of options when it comes to business accounting. To get more information on accounting procedures, visit our page today to streamline your record-keeping strategies.