Talking Cents

Important accounting terms explained by our small business accountants in Melbourne

When you run your own small business it is essential for you to be aware of the important key terms that you need to know and how they affect your business. As small business accountants in Sydney, we want you to be knowledgeable and ready for anything.

Two of the most important things that any business owner should be aware of is their BAS and IAS, our business accountants in Melbourne will talk you through it:

• Your BAS is one of the more complicated tasks that a business owner will have to try and understand, as it is a summary of what you owe the ATO, and how much tax will need to be withheld from the business. This is usually issued quarterly or monthly by the ATO. So what goes into your BAS?

o Goods and services tax (GST)
o Pay as you go (PAYG) income tax instalment
o Pay as you go (PAYG) tax withheld
o Fringe benefits tax (FBT) instalment
o Luxury car tax (LCT)
o Wine equalisation tax (WET)
o Fuel tax credits

• On the other hand your IAS is simpler to deal with, as it is a simple breakdown of what your GST instalments are and also (if applicable) what your AYG instalment is

These two statements are crucial for every business to avoid problems with the ATO and undergoing any type of audit. As Melbourne’s small business accountants, we want to ensure that your business avoids this at all costs.

As always, feel free to get in contact with our small business accountants in Melbourne with any enquiries you may have or you can check out our services here.