Remote Bookkeeping and OnLine Accounting Services Australia

Running a business involves reporting and paying certain tax obligations relating to employees and independent contractors. Payments to them require a withholding of certain amounts which must be paid to the Australian Tax Office (ATO) at regular times. In Australia, this is also known as Pay As You Go (PAYG) withholding. These and other tax obligations can be confusing and the best way to deal with them is by hiring a bookkeeper or accountant who uses QuickBooks hosted by Reckon online accounting services.

Employers have certain tax and superannuation obligations which can be found in QuickBooks hosted by Reckon online accounting software. These include:

• PAYG withholding
• Superannuation
• Fringe Benefits Tax (FBT)

In addition to these taxes, a taxpayer may also be liable to report and pay:

• Goods and Services Tax (GST)
• Luxury Car Tax
• Wine Equalisation Tax (WET)
• Deferred company instalments

Each taxpayer must report all obligations under the tax system and make tax payments through an activity statement lodged with the ATO. In order to support the activity statements, a taxpayer is required to keep all records of all its business transactions and records relating to income tax, GST, payments to employees and business payments.

Good records enable a taxpayer to manage business and make sound business decisions. These also facilitate the transfer of a business to another. For accounting purposes, record keeping and timely reporting enable a business to fulfill its financial obligations and avoid penalties.

Accounting records may be kept on paper or electronically. Various electronic record-keeping systems are available although the program generally preferred by businesses is QuickBooks hosted by Reckon online accounting services.

Completing the Activity Statement

The ATO sends a pre-filled activity statement to the taxpayer through the Internet or through a postal address specified on the Australian Business Register. The form contains some instructions for the taxpayer to follow. Completing the activity statements involving multiple tax obligations and computations can be confusing.

Business owners are allowed to use the services of a paid BAS agent who can calculate the correct taxes due and assist the taxpayer in lodging the statements manually or electronically.

Effects of errors and delays

Any incorrect statement that results in a shortfall in the tax payable may be penalized at various rates, depending on the reason for the error. Late lodging will also expose the taxpayer to one penalty unit ($110) for each 28-day period that the statement is in delay. Businesses may be assessed higher penalty units up depending on the value of annual turnover.

A BAS agent may assist the taxpayer in lodging the activity statement manually or electronically. The ultimate responsibility, however, for the statement’s accuracy and completeness dwells on the taxpayer. Hiring a BAS agent who uses QuickBooks hosted by Reckon online accounting system helps to minimize errors in completing the statement.