Make BAS time easier following our 3 tips

These simple habits can help you stay on top of your GST.

If the GST you collect gets mixed in with your business cash flow, it’s easy to accidentally spend it – which can leave you short at BAS time.

To help you plan ahead and ensure you have the funds to cover your BAS, try these simple tips:

1. Separate the GST.

Keep the GST you collect separate from your day-to-day cash flow so you’re ready to pass it on at BAS time. You could set it aside in a separate bank account to avoid spending it unintentionally.

2. Review your cash flow.

Check how much GST you’re collecting and how much you can claim, so the net GST doesn’t catch you off guard. Your net GST is the difference between the GST you’ve collected on taxable sales and the GST credits you’re entitled to claim on business purchases.

• If you collect more GST than you’re claiming, you’ll pay the difference.
• If your credits are higher, you may receive a refund.

3. Pass it on.

Lodge and pay your BAS in full and on time. Paying on time helps you avoid unnecessary interest charges.

For more top tips, visit ato.gov.au/CashFlowTips, or you can seek advice from our RA Advisory’s registered tax professional.

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Source: ATO