More Reasons You Should Hire a Registered BAS Agent
Taxation is one area where most self-employed business people experience difficulties. It is not that they conduct illegal or unregistered businesses, but the issue arises when they don't manage their business books properly. Unfortunately, most people lack the required information and knowledge to accurately record and calculate the correct amount of tax to be paid to the government. This leads to unnecessary tax bills and fines from the relevant taxation institutions. Fortunately, there are registered tax professionals who are proficient in accurately managing business-activity statements, among other benefits. These professionals are referred to as business-activity statements agents (BAS agents), and you can hire them to help you with your business tax calculations and bookkeeping, among other things. The following reasons will easily help you make this decision.
1. Accurate and timely report submission
When it comes to submitting tax reports, the submission time should be strictly followed. A BAS agent will ensure that your BAS documents are prepared accurately and submitted on time. This will prevent you from paying fines for late report submission.
2. Protection from legal prosecution
By hiring a BAS agent, you will be protected from existing tax laws that prosecute you because of late report submission or false information in the reports. Since the BAS agent will be responsible for preparing and submitting your tax reports, you will not be legally responsible for administrative fines or penalties issued by the relevant taxation institutions.
3. Evading unnecessary fines
Every BAS agent should be registered and have indemnity insurance cover. The cover is important because it will protect you as a consumer. In a case where an agent makes a data-entry mistake that may result in your incurring monetary fines, you can ask the agent to cater for the fines.
4. Avoiding fraud agents
There are cases in which several business people have received poor services from individuals claiming to be registered BAS agents. An unregistered agent may lack the required experience and skills to correctly prepare your business-activity statements as well as understand the important role they play in this process. Therefore, you should ensure you hire a registered agent to avoid any future irregularities and possible fines.
5. Managing debtors
Most small businesses face issues when it comes to managing their cash flow. Agents offer an essential service to your business by invoicing your clients on time. This is to guarantee your clients will pay their debt on time, and that ensures that there is constant and sufficient cash flow in your business. Bad debts may cripple your business over time, and slow-paying debtors will drain your business in the end. Therefore, hiring a BAS agent for your business will assist you in professional handling of all business debts while guaranteeing continuous cash flow.