Running a restaurant is as easy as juggling a dozen fry pans greased with butter – on the handle! Probably not our best joke, but neither is spending time preparing BAS reports for the ATO.
Fortunately, the Australian Taxation Office (ATO) understands that small business owners need simpler compliance processes. From 1 July 2017, restaurant and cafe owners with a turnover of $10 mil or less will be transitioned to Simpler BAS reporting. Small businesses that apply for eligibility have the option to register immediately to use Simpler BAS.
Simpler BAS means faster bookkeeping – and more time for you to focus on improving your restaurant!
Bookkeeping and paying your taxes on time are important in running a restaurant. These require focus and attention to detail, and most restaurateurs are too busy to pay a lot of attention to bookkeeping. A simpler BAS makes record keeping and reporting easier.
Simpler BAS requires only three types of information: GST on sales, GST on purchases and total sales. That’s it! In the past, restaurant owners also had to report export sales, other GST free sales, capital purchases and non-capital purchases. Not anymore! Cafe and restaurant bookkeeping has become easier.
From 1 July 2017, restaurants, cafes and small businesses will more easily classify transactions and prepare and lodge their BAS. You can save time and cost savings because a simper BAS simplifies account set up, GST bookkeeping and BAS preparation! Here’s a quick outline of a simpler BAS.
Report only the following GST information:
- GST on sales (1A)
- GST on purchases (1B)
- Total sales (G1)
The following GST tables will be removed:
- Export sales (G2)
- Other GST free sales (G3)
- Capital purchases (G10)
- Non-capital purchases (G11)
To learn more about simpler BAS and how it’ll help you run your food business, contact our expert restaurant bookkeepers. We specialise in using Xero and MYOB bookkeeping software to help restaurateurs grow their business! This blog post about BAS and GST will also give you more detailed information about bookkeeping.