The calendar can be a business owner’s best friend and worst enemy. While it ticks off milestones and successes, it also relentlessly marches towards deadlines, especially financial ones. One such date that recently passed was October 28th, the due date for the July, August, and September Business Activity Statement (BAS).
If you’re reading this and feeling a knot in your stomach because you, or your business, missed that deadline, take a deep breath. You’re not alone. For countless Australian business owners, juggling the demands of operations, staff, sales, and personal life means that sometimes, things slip through the cracks. While it’s not ideal, ignoring it is the worst possible approach.
So, what do you need to do right now?
Immediate Steps: Don’t Delay, Act Today!
1. Lodge Your BAS IMMEDIATELY (Even If You Can’t Pay):
The Australian Taxation Office (ATO) imposes penalties for failing to lodge your BAS on time, known as a Failure To Lodge (FTL) penalty. This is separate from any penalties for late payment. By lodging your statement as soon as possible, you minimise or potentially avoid this specific penalty. Get it in, even if you can’t pay the full amount due.
2. Understand the General Interest Charge (GIC):
If you haven’t paid your BAS by the due date, the ATO will apply a General Interest Charge (GIC) to the unpaid amount. This charge accrues daily from the due date until the payment is made in full. The GIC rate can fluctuate, but it’s designed to encourage timely payment and cover the cost to the government for late receipts. The longer you wait, the more this interest will add up, making your debt larger.
3. Contact the ATO (or Your BAS Agent) for a Payment Plan:
This is critical. If you genuinely cannot pay your outstanding BAS amount, contact the ATO as soon as possible to discuss a payment arrangement. The ATO is often willing to work with businesses that are transparent and proactive in addressing their debt. You might be able to set up an instalment plan that suits your cash flow. Having a registered BAS agent, like Nova Business Services, can make this process smoother as we can liaise with the ATO on your behalf, explaining your situation and negotiating a feasible plan.
Why Deadlines Get Missed: The Business Owner’s Dilemma
Often, missing a BAS deadline isn’t due to negligence, but overwhelm. Australian business owners are typically experts in their chosen field, builders, designers, café owners, consultants, but they’re not always financial whizzes. They’re time-poor, juggling operational tasks, client demands, and strategic growth. Financial administration, while crucial, can become a secondary concern until it becomes a crisis. This is the classic “don’t know what they don’t know” scenario, where the intricacies of tax compliance, cash flow management, and timely reporting feel like a foreign language.
Prevention is Always Better (and Cheaper) Than Cure
The stress, penalties, and interest associated with a missed BAS can be significant. The best way to avoid this recurring nightmare is through proactive financial management:
Consistent Bookkeeping: Up-to-date and accurate financial records are the backbone of any healthy business. They provide real-time insights into your financial position, making it easier to forecast liabilities like GST.
Effective Cash Flow Management: Understanding your incoming and outgoing funds allows you to set aside money for tax obligations, preventing last-minute surprises.
Leveraging Accounting Software: Cloud-based solutions like Xero, QuickBooks, and MYOB, integrated with tools like Dext, can automate many aspects of bookkeeping, from invoicing to bank reconciliations, giving you a clear financial picture at your fingertips.
Engaging a Registered BAS Agent: A professional can manage your BAS and GST obligations, ensuring accuracy, compliance, and timely lodgement, taking the burden off your shoulders entirely.
How Nova Business Services Can Help You
At Nova, we understand the pressures Australian business owners face. We’re not just about fixing problems; we’re about preventing them and empowering you to focus on what you do best.
BAS & GST Services: As your registered BAS agent, we’ll handle all your BAS and GST requirements, ensuring accuracy and timely lodgement.
Professional Bookkeeping: Our skilled team keeps your financial records pristine, providing clarity and peace of mind.
Accounting Software Implementation: We specialise in setting up and optimising cloud software, streamlining your financial processes.
Cash Flow Management: We can help you gain control over your cash flow, ensuring you have the funds ready for your obligations.
Comprehensive Business Support: From payroll and administration to business coaching with Dale and even debt collection, Nova offers a suite of services designed to free you up to drive growth. You might be surprised by all the ways we can help, extending far beyond traditional bookkeeping.
Don’t let a missed BAS deadline define your financial health. Take action now and put robust systems in place for the future.
Need assistance with your overdue BAS or want to implement strategies to avoid future stress? Contact Nova Business Services today for an obligation-free conversation. Discover how our tailored solutions can free you up to focus on what truly matters, growing your business and achieving your financial goals. We’re more than just bookkeeping; we’re your partner in success.
Our team is here to support you and your business in many different ways, give us a call on 1800 668 225 or reply to this blog by clicking here to ask us any questions.
