Short on your BAS?
With increased living pressures we have had clients unable to pay what they should have collected for GST and PAYG. This is your first indication that things are not lining up with what you are making and what you are spending and means you need to have an urgent look at your numbers before things snowball.
If you use Xero or MYOB, you should be able to see month by month what these numbers are by looking at a profit and loss. You should be able to see what money you have and what is due by looking at your balance sheet. As a business owner, YOU should be able to see this so you can take action quickly. If this isn't the case, it can be fixed with good bookkeeping and a good accountant to show you how to read your numbers.
With all the things to stress about, ATO debt should not be one to add to your list. As much as the ATO are the grinch in the corner sometimes, they are also very generous at allowing you time to pay off debt. The easiest way to set a payment plan with debts up to $200k is through ATO online services or just giving them a call.
You will need to have had a look at what you can afford first and discuss with them why you couldn't pay this time and what measures you have taken to adjust this for next time. You will also need to guarantee that the next BAS and any other obligations are paid on time.
The ATO website has an online calculator to help you work through what you can afford and how to set this up.
https://www.ato.gov.au/individuals-and-families/paying-the-ato/help-with-paying/payment-plans
Your tax agent can also help with this but just be aware it isn't a 3 second process anymore and may have costs involved.
The payment plan option is an easy fix but is not an ongoing solution. It should be seen as a sign that your business is a bit out of whack and it is time to look at your numbers, get some help and make some changes.
If you are unsure and would like to understand your position in more detail - call 97218 218 and ask to speak to one of our accountants.
Your local Accountant. Conveniently located in Bunbury & Dunsborough and servicing the South West business community for over 20 years. We know business. Check out Our Solutions to see what we can do for you.
