Lodging your Business Activity Statement (BAS) on time in Australia, as required by the Australian Taxation Office (ATO), offers several benefits for businesses. Filing your BAS on time ensures compliance with tax regulations and helps you manage your business more effectively. Here are seven benefits of lodging your BAS on time in Australia:
1 Avoid BAS Penalties
One of the most significant benefits of lodging your BAS on time is avoiding penalties and fines imposed by the ATO for late or non-compliance. Late lodgments can result in penalties that can add up over time.
2 Maintain Good Standing
Timely BAS lodgment helps your business maintain a good reputation with the ATO. A positive compliance history can be beneficial when applying for various business-related approvals and licenses.
3 Improved Cash Flow Management
Lodging your BAS on time allows you to accurately track your financial position. You can identify your GST liability, claim any eligible GST credits, and plan your cash flow effectively.
4 Accurate Financial Reporting:
Filing your BAS on time ensures that your financial statements are accurate and up-to-date. This accuracy is crucial for making informed business decisions and for presenting financial information to stakeholders like investors or lenders.
5 Claiming GST Credits:
Timely BAS lodgment enables you to claim input tax credits (GST credits) on eligible expenses. This can result in a reduction in your overall GST liability and a potential cash flow benefit.
6 Meeting Business Obligations:
Complying with BAS lodgment deadlines is a legal requirement for Australian businesses. Filing on time fulfills your tax obligations, reducing the risk of audits and legal consequences.
7 Simplifying Year-End Tax Reporting:
Lodging your BAS on time can simplify your year-end tax reporting process. Accurate and timely lodgment of your BAS can reduce the likelihood of discrepancies and potential issues during the tax return preparation.