BAS Lodgement Question

Lgomertose on 22/04/2015 - 15:25
Last edited 22/04/2015 - 15:26

I am filling out my quarterly BAS for the first time.

I am considered a contractor whereby I do the work, submit an invoice and then get paid about a week later.

If I issue an invoice dated before April 1, but only get paid into my account after April 1, should that be included in the Jan 1 - March 31 period or 1 April - June 30? I assume it's the later but wanted to make sure.

Have tried calling the ATO about this but am never able to speak to someone "we are experiencing peak demand…" and get disconnected without being able to talk to someone.

Financial

Comments

  • megamilinda on 22/04/2015 - 15:32
    +3

    Depends if you report on as CASH or ACCRUAL basis, most small businesses are CASH based, you will see in the top right hand corner of the BAS statement.

    If you are CASH, the when you declare depends on when you actually receive the income (not when you invoice it).

  • scotty on 22/04/2015 - 16:00
    +1

    What megamilinda said. See this page on ATO.gov.au on choosing between cash or accrual accounting although most business under $2 million/year turn overs are using cash because of simplicity — you only count what gets in/out of the bank. Therefore in your case if the invoice is only paid into your bank after 31 March, it would be in 2015 Q2 not in Q1's BAS.

    Good idea however to ask an accountant for advice.

  • gomertose on 22/04/2015 - 16:11

    Thanks for the replies. I guess I didn't fully understand the concept of "CASH" (thought it was physical money changing hands) when I applied for my sole trader ABN.

    Might have to try contacting the ATO again to see if I can change out of accruals.

  • Chrotzo on 22/04/2015 - 18:45

    get a business portal. https://bp.ato.gov.au/ to lodge your BAS online.

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