Starting a small business is exciting and rewarding, but it can also be challenging. One of the challenges you will face is managing the finances of your business effectively. It's essential to get your accounting basics right, and one of the key components of small business accounting is understanding the Business Activity Statement or BAS.
In this blog, we will cover all the basics of starting or running a small business in relation to accounting, including what is a Business Activity Statement and how much do accountants typically charge.
How to charge a Hyde Cooper Wells?
One of the first questions you might have is how much do accountants charge for small business services? This is a difficult question to answer, as accounting fees can vary depending on a range of factors, including the firm's size, the number of services needed, and the complexity of your business.
To help give you an idea of what to expect, an accountant will typically charge between $60 to $500 per hour. This may seem like a wide range, but it all depends on the individual accountant's experience and expertise.
When looking for an accountant, it's essential to find someone who is both affordable and trustworthy. Your accountant should be transparent about their fees, and you should always agree on pricing before any work begins.
What is a Business Activity Statement (BAS)?
A Business Activity Statement is a form that small business owners must fill out to report and pay GST (Goods and Services Tax), PAYG (Pay As You Go) instalments, and other taxes to the Australian Taxation Office (ATO).
The BAS is a critical component of small business accounting, as it enables the ATO to keep track of a business's tax obligations. Failing to submit your BAS on time or making mistakes on the form can result in fines and penalties.
When should I submit my BAS?
Most businesses need to report to the ATO every quarter. The due dates for BAS submissions are:
- 28 October for the July - September quarter
- 28 February for the October - December quarter
- 28 April for the January - March quarter
- 28 July for the April - June quarter
However, it's important to note that some businesses may be required to submit more frequently, such as monthly or annually.
How to manage my small business accounting?
Managing your small business accounting does not have to be a daunting task. By following these tips, you can stay on top of your finances:
1. Keep accurate records. Ensure that you keep detailed records of all transactions, including income and expenses.
2. Use accounting software. Accounting software can help streamline your accounting processes and make it easier to reconcile your accounts.
3. Hire an accountant. An accountant can help you navigate the complexities of small business accounting and provide valuable advice on how to minimise your tax obligations.
Starting or running a small business can be challenging, but with the right advice and support, you can succeed. At the heart of your success is effective small business accounting, including understanding the Business Activity Statement and how to manage your finances efficiently.