A BAS agent is an accounting professional who is qualified to prepare business activity statements and other accounting paperwork, and for a small business owner, their services can be very invaluable. If you're handling many aspects of your business' bookkeeping and accounting yourself, note when and why you may want to hire BAS agents and how they can assist you with company finances.
When taking on a partner or going public
If you want to take on a partner or merge with another company, or take your company public and sell shares of stock, you will need certain profit and loss statements prepared. These should be done by a professional so that they are complete and comprehensive and so that they make it easier for potential partners to understand all the details of your company's finances. Trying to prepare these statements yourself can mean overlooking details such as the type of accounting processes you use or the increase and decrease of net profits over a certain span of time. Withholding or falsifying any information can also result in legal liabilities down the road. A BAS agent will be able to prepare the statements comprehensively and legally to protect you and your future partners or investors.
Preparing for the GST tax
If you sell any goods or services in Australia, you often need to pay a goods and services tax, or GST. This tax is typically collected from your clients and customers and then it needs to be paid to the government accordingly. A BAS agent can help you prepare for the GST tax bill you might be facing, based on your expected business, and then also prepare the paperwork needed when you submit the GST. This will ensure your GST is paid properly and you don't face additional fines or even criminal charges for failing to pay this tax.
A BAS agent can prepare your accounting paperwork so that you know the state of your accounts payable and receivable. They can also offer added assistance with your collection for past due receivables. He or she may prepare collection notices to send to clients or customers, work with a collection agency when needed and also note if old debt can be included on your tax returns as a loss. Not only will this protect your company financially, but it will also ensure that your collection efforts fully comply with any laws that govern how a business may attempt to collect a debt.Share