BAS agent services – what’s in it for your small business?

bookkeepersSydney

BAS agent services – what’s in it for your small business?

Even in the world of taxation, there is no discrimination between small firm or larger enterprise. Everyone is obligated to pay their fair share in terms of tax to the government and government promises to return it in terms of investment in public sector, providing healthcare, infrastructure and subsidies, etc. Even in certain cases if the tax paid over the year is more than tax payable then one gets the perk of receiving it back. It’s a simple rule which keeps the cycle of equal wealth distribution running.

In this article we shall discuss the significance of BAS agent services and their role in facilitating small firms. For that we first have to find out what a BAS agent is and what exactly is their function that can be of advantage to the small business?

Defining BAS-

BAS is the abbreviation of Business Activity Statement. Basically BAS is a document that reports Australian businesses’ total calculations and figures, and state the businesses’ tax liabilities which are submitted in the form of a report to the ATO.

The first introduction of BAS was made along with GST in year 2000 and so it became a required document for all ongoing businesses once businesses became liable to pay their taxes. In this case when a BAS was submitted the business became liable of paying their due tax enabling government to collect the tax returns rather sooner. Hence this enabled businesses to distribute their tax payments over the year and balance their cash flow.

Role of BAS Agent

The basic functions of a BAS Agent are mentioned as follow;

  • He is to prepare and file BAS on the business’s behalf
  • Proposal of advice regarding BAS-related matters which involve; GST and PAYG.

The authorized role of BAS Agent is rather new for all bookkeepers Sydney. In 2009 it was officially introduced to standardize the BAS associated services offered by bookkeepers with the qualifications not below the Certificate III from TAFE or institutions like OTEN. Till then, most contract bookkeepers were quite happily computing and filing their client’s GST and PAYG liabilities, with no requirement of any official training or experience. At that time for either small or large business owners, it was a huge substitute to their hired accountants who charged rather high rates hourly, therefore the service of calculating and filing BAS was  expected to be offered from anyone providing accounting services. This legalization of BAS accountants enabled the government to create the accountability of both normally hired and BAS for errors or poorly executed tax calculations and fined accordingly.

BAS Agents-Advantage for small businesses?

It is rather very difficult for a small enterprise to hire an accountant for computation of their accounting and tax records to avoid any errors and proper execution of calculation of taxable income and hence identification of accurate tax amount. Therefore many small firms are able to hire BAS agents to perform bookkeeping services Sydney. However with government’s step of making BAS official made it easier for small companies to contract BAS agents and get their auditing done legally sort of boosted the requirement for BAS agent services.

A trained, proficient BAS agent would save time by keeping from the lengthy struggle of identifying exactly what should be included in the BAS and its proper organization and preparation. A properly skilled and certified BAS agent would tend to save a lot of money of their client, by utilizing their thorough knowledge of the tax rules which would allow them what exactly to exempt or deduct to which your business is liable.

Not hiring a BAS Agent and BAS goes wrong-

One can lodge their BAS and pay their tax electronically, either by mail, or in-person. However it must be submitted on the assigned time in order to elude any interest, fines or penalties.

However doing bookkeeping Sydney yourself can be very boring and dry if one doesn’t have proper training and skill when running a small business. BAS could be rather complicated and very time consuming compared to all the other activities that could be done to improve and grow a business. A possibility lies that there could be an underpayment of taxes due to a mistake and Australian Tax Office has very strict policies on penalties for such mistakes.

Small Businesses hire BAS Agent- save thousands of dollars! can be very boring and dry if one doesn’t have proper training and skill when running a small business. BAS could be rather complicated and very time consuming compared to all the other activities that could be done to improve and grow a business. A possibility lies that there could be an underpayment of taxes due to a mistake and Australian Tax Office has very strict policies on penalties for such mistakes.

  • Is the BAS agent certified? You can look for the registration and certification of a accountant as a proper BAS Agent by examination of the public register in Tax Practitioners Board.
  • By hiring a certified and experienced the owner can the accuracy of the BAS. Furthermore he can also contribute by keeping the up-to-date record of all the data and provide it to the BAS agent for the preparation of BAS.
  • Keeping your agent updated with data and discussing all the possibilities of acquiring claim through BAS enlisted items and further on extra items that can be claimed on BAS such as Fuel Tax Credits. Properly executed and prepared BAS by a significantly trained BAS agent can literally save an owner of small enterprise stacks of dollars.

Accounting: The Recording Process

Accounting: The Recording Process

 

Maintaining proper and fine accounts has become very essential today, as a result, of increasing complementation in the business-world. Every business organization is, therefore, supposed to maintain fine accounts  comprising of all the financial transactions, financial as well as nonfinancial information. We all know that any accounting involves a fine recording, summarizing, proper classification as well as the interpretation and communication of financial information.

 

The accounting cycle, therefore, provides a series of procedures regarding the collection, communication and the processing of the financial information. The accounting process and the process of preparation of tax return Sydney is divided into various parts that affect the maintenance the account of the organization. Financial information of an organization is presented properly in reports. These reports are known as financial statements. But before preparing a financial statement, an accountant needs to gather various details and information about the business transactions of that enterprise. He further needs to record the obtained information and then collate it to come up with a proper report.

 

The business transaction, therefore, forms a complete cycle and several steps are taken to complete a financial statement. This complete chain of forming a proper business transaction and financial statement in called as a recording process.

 

The recording process is the whole process that goes on in maintaining a financial statement. From the very starting to the final destination of the statement, the recording process involves various steps that are to be taken to maintain a good and proper account. These steps are nine in number and help to remove all the flaws from the transaction so made. This recording process starts from the very beginning, from the process of identifying and analyzing transactions and events to reaching the post closing trial balance. A brief study of the recording process in accounting is mentioned below

 

•    Identifying and analyzing business transactions:-

Every accounting process of a transaction starts with identifying and analyzing. Under this process, all the important transactions that pertain to a business entity are recorded. Every transaction is identified as to relate to a business entity. After the identification of the transaction, the process of analyzing it starts. The process of analyzing involves the determination of the accounts affected and also the accounts that are to be recorded. This step thus includes the preparation of business documents. The document so prepared serves as the basis of a business transaction.

 

•    Maintaining the records of transactions in a journal:-

A journal is simply a book, either a paper or electronic, in which all the transactions are recorded. After the identification and analyzing process, the transaction goes through the process o recording it in a journal. These transactions are recorded in a journal, using a double entry bookkeeping system. The transactions in a journal are always recorded in chronological order, the journals are, therefore, also known as ‘Books of original entry.’

 

•    Posting a transaction to a ledger:-

Posting the transaction into a ledger further follows the second step. A ledger is nothing but a collection of accounts that present the changes made in each account, as a result, of past transactions and their existing balances. The ledgers are also known as the “Books, of final entry.’ This is the most important step in the recording process of the transaction. After the posting is done, the balances of each account start to be determined.

 

•    Unadjusted trial balance:-

All the balances obtained, as a result, of ledger are further arranged in one report. All the debit balances are further added in it. Along with the debit balances, the credit balances too are added. The balance of the debits and the credits must be equal. However, if any error is discovered during this process, correcting entries are made in order to rectify them. Sometimes, errors could exist even when the balances of debits and credits are equal. This happens, as a result, of double posting or failure of recording a transaction.

 

•    Adjusting entries:-

The fifth step involving in a recording process is the step of adjusting the entries of a transaction. It is prepared as an application of the real basis of the accounting. Many of the times, at the end of the accounting period various expenses, are incurred that have not been recorded in the journals. Likewise, various incomes that have been earned is also not recorded in the journals. Thus, adjusting entries are prepared in this regard that thereby adjusts the left incomes and the expenses before they are concluded in the financial statements. Adjusting entries of allowances, depreciation, deferrals, etc. is also made.

 

•    Adjusted trial balance:-

Many of the times the trial balances are also adjusted, as a result, of any discrepancy in the transactions. It is prepared once the adjusting entries are made and, prior to the preparation, of financial statement. The step of adjusting the trial balance is simply made to ensure whether the debits are equal to the credits or vice-versa.

 

•    Financial Statements:-

After all the adjustments of the trial balances and several entries comes the step of preparing a financial statement of the transaction. When the accounts are being checked of the flaws and the balance of the debits and the credits is ensured, the financial statement is prepared. The financial statement is the tail end of a business transaction.

 

 

•    Closing entries:-

The preparation of financial statement is further followed by the preparation of closing entries. Temporary or nominal accounts are closed to prepare a proper system of next accounting period. The temporary accounts include in them the income, expenses and withdrawal accounts that are closed to give rise to the next accounting system. These are closed to a summary account. Real or permanent accounts like balance-sheet accounts are never closed.

 

•    Post-closing trial balance:-

A post closing trial balance is lastly prepared again to check the equality of the debits and credits after the closing entries are made.

 

Thus, these were the steps involved in the recording process of the transaction. Once the transaction goes through all the above listed steps, it becomes free of all the flaws and the discrepancies. Hence, anybody could take a look into it and eventually a proper ad a perfect account is maintained.

 

 

 

Types of Accounting

Accounting: The Recording Process

 

Maintaining proper and fine accounts has become very essential today, as a result, of increasing complementation in the business-world. Every business organization is, therefore, supposed to maintain fine accounts  comprising of all the financial transactions, financial as well as nonfinancial information. We all know that any accounting involves a fine recording, summarizing, proper classification as well as the interpretation and communication of financial information.

 

The accounting cycle, therefore, provides a series of procedures regarding the collection, communication and the processing of the financial information. The accounting process is hence divided into various parts that eventually lead to the maintenance of a proper account of the organization. Financial information of an organization is presented properly in reports. These reports are known as financial statements. But before preparing a financial statement, an accountant needs to gather various details and information about the business transactions of that enterprise. He further needs to record the obtained information and then collate it to come up with a proper report.

 

The business transaction, therefore, forms a complete cycle and several steps are taken to complete a financial statement. This complete chain of forming a proper business transaction and financial statement in called as a recording process.

 

The recording process is the whole process that goes on in maintaining a financial statement. From the very starting to the final destination of the statement, the recording process involves various steps that are to be taken to maintain a good and proper account. These steps are nine in number and help to remove all the flaws from the transaction so made. This recording process starts from the very beginning, from the process of identifying and analyzing transactions and events to reaching the post closing trial balance. A brief study of the recording process in accounting is mentioned below

 

•    Identifying and analyzing business transactions:-

Every accounting process of a transaction starts with identifying and analyzing. Under this process, all the important transactions that pertain to a business entity are recorded. Every transaction is identified as to relate to a business entity. After the identification of the transaction, the process of analyzing it starts. The process of analyzing involves the determination of the accounts affected and also the accounts that are to be recorded. This step thus includes the preparation of business documents. The document so prepared serves as the basis of a business transaction.

 

•    Maintaining the records of transactions in a journal:-

A journal is simply a book, either a paper or electronic, in which all the transactions are recorded. After the identification and analyzing process, the transaction goes through the process o recording it in a journal. These transactions are recorded in a journal, using a double entry bookkeeping system. The transactions in a journal are always recorded in chronological order, the journals are, therefore, also known as ‘Books of original entry.’

 

•    Posting a transaction to a ledger:-

Posting the transaction into a ledger further follows the second step. A ledger is nothing but a collection of accounts that present the changes made in each account, as a result, of past transactions and their existing balances. The ledgers are also known as the “Books, of final entry.’ This is the most important step in the recording process of the transaction. After the posting is done, the balances of each account start to be determined.

 

•    Unadjusted trial balance:-

All the balances obtained, as a result, of ledger are further arranged in one report. All the debit balances are further added in it. Along with the debit balances, the credit balances too are added. The balance of the debits and the credits must be equal. However, if any error is discovered during this process, correcting entries are made in order to rectify them. Sometimes, errors could exist even when the balances of debits and credits are equal. This happens, as a result, of double posting or failure of recording a transaction.

 

•    Adjusting entries:-

The fifth step involving in a recording process is the step of adjusting the entries of a transaction. It is prepared as an application of the real basis of the accounting. Many of the times, at the end of the accounting period various expenses, are incurred that have not been recorded in the journals. Likewise, various incomes that have been earned is also not recorded in the journals. Thus, adjusting entries are prepared in this regard that thereby adjusts the left incomes and the expenses before they are concluded in the financial statements. Adjusting entries of allowances, depreciation, deferrals, etc. is also made.

 

•    Adjusted trial balance:-

Many of the times the trial balances are also adjusted, as a result, of any discrepancy in the transactions. It is prepared once the adjusting entries are made and, prior to the preparation, of financial statement. The step of adjusting the trial balance is simply made to ensure whether the debits are equal to the credits or vice-versa.

 

•    Financial Statements:-

After all the adjustments of the trial balances and several entries comes the step of preparing a financial statement of the transaction. When the accounts are being checked of the flaws and the balance of the debits and the credits is ensured, the financial statement is prepared. The financial statement is the tail end of a business transaction.

 

 

•    Closing entries:-

The preparation of financial statement is further followed by the preparation of closing entries. Temporary or nominal accounts are closed to prepare a proper system of next accounting period. The temporary accounts include in them the income, expenses and withdrawal accounts that are closed to give rise to the next accounting system. These are closed to a summary account. Real or permanent accounts like balance-sheet accounts are never closed.

 

•    Post-closing trial balance:-

A post closing trial balance is lastly prepared again to check the equality of the debits and credits after the closing entries are made.

 

  • Tax Preparation:

Small businesses are required to make sure they are up to date with tax requirements by lodging Tax Return Sydney  and lodgement dates can be found here

 

Thus, these were the steps involved in the recording process of the transaction. Once the transaction goes through all the above listed steps, it becomes free of all the flaws and the discrepancies. Hence, anybody could take a look into it and eventually a proper ad a perfect account is maintained.