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BAS Lodgement Options: Which One is Right for Your Business?

01 October 2024

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Lodging your BAS is a huge part of a business’s tax obligations. This includes reporting on GST, PAYG withholding, and other taxes. There are several options to lodge BAS. Which one is right for your business?

Let’s explore the various BAS lodgement options—along with the pros and cons of each—to help you make an informed decision.

Manual Lodgement

Manual lodgement involves filling out a physical BAS form and mailing it to the Australian Taxation Office (ATO). This option might seem straightforward, but it’s often the least preferred for several reasons.

Pros:

  • No need for technology: Manual lodgement does not require online platforms or software. It’s an easy option if you or your staff are not tech-savvy.
  • Control over the process: Some business owners prefer to handle all aspects of their tax obligations directly, without intermediaries or digital platforms

Cons:

  • Time-consuming: Filling out the form manually and mailing it can take more time than other available methods.
  • Prone to errors: Manual entries are more susceptible to errors without digital checks and balances. Mistakes can lead to penalties if not corrected promptly.
  • Delayed processing: Mailing documents means additional waiting time for processing and potential delays in refunds or confirmations

 

When to Use Manual Lodgement: This option might be suitable for small businesses or sole traders who are comfortable with paperwork and have minimal transactions. However, the drawbacks often outweigh the benefits, particularly if you have a high volume of transactions or complex tax obligations.

Online Lodgement

Online lodgement is the most popular option among businesses of all sizes. It involves submitting your BAS electronically through several online platforms: the ATO’s online business portal, the myGov platform for sole traders, or SBR-enabled software integrated with your accounting system.

Pros:

  • Convenience and speed: Online lodgement allows you to submit your BAS—anytime, anywhere.
  • Automated calculations and error checks: Many online platforms and accounting software tools automatically calculate your GST and other tax obligations, reducing the likelihood of errors.
  • Faster processing and refunds: Electronic lodgement often results in quicker processing times, and you may receive any refunds faster than through manual methods.
  • Extended lodgement time: Businesses that lodge online might be eligible for a two-week extension, giving you more time to get everything in order.

 

Cons:

  • Requires digital literacy: For those unfamiliar with digital tools, there may be a learning curve involved in navigating online lodgement systems.
  • Technical issues: There’s always a risk of technical glitches or outages when using online platforms, which could disrupt your lodgement process.

 

When to Use Online Lodgement: Online lodgement is ideal for most businesses, particularly those with moderate to high transaction volumes. It’s a good option if you’re comfortable using digital platforms. Plus, it’s a faster, more efficient process.

Using a Registered BAS Agent

A registered BAS agent is a professional who specialises in preparing and lodging BAS on behalf of businesses. This option offers a more hands-off approach, eliminating the stress of paperwork and deadlines.

Pros:

  • Expertise and peace of mind: BAS agents are knowledgeable about the latest tax regulations and can help ensure your BAS is accurate and compliant. Their expertise minimises the risk of errors and penalties.
  • Timesaving: By outsourcing this task, you free up valuable time to focus on core business activities.
  • Tailored advise and support: BAS agents can provide personalised advice and support, helping you make informed decisions about your tax obligations and overall financial strategy.

Cons:

  • Cost: Hiring a BAS agent involves additional costs, which can vary depending on the complexity of your business finances and the agent’s fees.
  • Less control: Some business owners may feel uneasy about entrusting their financial information to a third party.

 

When to Use a BAS Agent: Using a BAS agent is especially beneficial for businesses with complex tax obligations or those that lack in-house expertise. It is a wise investment if your business needs specialised support to manage your tax affairs.

Which BAS Lodgement Option Is Right for Your Business?

Choosing the right BAS lodgement option depends on several factors, including the size of your business, the complexity of your tax obligations, your familiarity with digital tools, and your budget.

  • Manual lodgement might suit sole traders or small businesses with simple tax requirements, though the risks and delays often make this the least attractive option.
  • Online lodgement is a great choice for most businesses, offering a balance of convenience, speed, and cost-effectiveness. It’s particularly suitable if you have the necessary digital skills or use accounting software.
  • Using a registered BAS agent is ideal for businesses looking for professional support and peace of mind, especially if you have complex tax obligations or prefer to focus on core business activities rather than tax compliance.

 

No matter which lodgement option you choose, ensuring your BAS is lodged accurately and on time is crucial to avoid penalties and remain compliant.

Ready to simplify your BAS lodgement? We can help – call us on 1800 861 566. Our team at Retinue is here to help you navigate the complexities of BAS.

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*Retinue’s (ABN 66 658 618 449) payroll service includes the processing of hours and wages rates provided by you. We do not determine award rates for your employees or provide advice on the correct employment status of your employees. It is your responsibility to ensure that your employees are paid correctly and we recommend obtaining advice from specialised employment relations experts.

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