Lodge activity statements direct through Xero for small business

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Australian businesses who turnover more than $75,000 annually have to lodge a business activity statement (BAS) for their either monthly, quarterly or annually to the Australian Tax Office (ATO) to report and pay GST and sometimes other taxes.

A small business may use their advisor to help them prepare and lodge their BAS, or they prepare themselves and manually enter the information and lodge with the ATO portal online or the ATO paper form by post. This is time-consuming and error-prone, as it forces double handling of data across different systems.

But now, lodging activity statements with Xero makes BAS lodgement easier by eliminating the need to rekey data or submit paper forms; saving time and reducing transposition errors.

Reducing double entry and saving time

The new ability to lodge activity statements from Xero gives businesses the freedom and control to meet their monthly or quarterly compliance requirements faster than before, either via their connected advisor or directly to the ATO.

Built directly into Xero and included at no extra cost into existing Australian Xero Business subscriptions. Business owners and their advisers can now be connected in real time to the ATO for their BAS from Xero directly. They can see when their BAS is due, check whether they’ve filed which helps to manage their cash flow far more easily. Bringing BAS lodgement directly into Xero has the potential to help significantly reduce BAS preparation and lodgment times from an average of 1.4 hours each quarter to minutes.

Since releasing to Xero certified advisers a few weeks ago, thousands of BAS have been successfully lodged from Xero.

How to start lodging activity statements

Step 1: Connect Xero to the ATO

To be able to lodge activity statements directly to the ATO, small businesses need to authorise Xero to do it. To give the authorisation, call the ATO on 1300852232.

Step 2: Lodge your BAS

After Xero is authorised, activity statements can be viewed on the BAS dashboard. Data from Xero, including GST, is automatically updated into the BAS report, and adjustments can be made manually. After completing the required fields on the activity statement hit the Lodge to ATO button to submit the completed BAS to the ATO.

For more step-by-step instructions, see the Xero Central help page.

Get help from a Xero certified advisor

Xero certified advisors can also quickly lodge activity statements on behalf of their clients from within Xero. Having all the information in one place eliminate double-handling of data and means they spend less time chasing data. This enhanced visibility allows advisors to collaborate more closely with their clients, and help them plan ahead and manage cash flow to meet their obligations.

Chat with your advisor if you’re unsure whether you should lodge your activity yourself or through them. If you need to find an accountant or bookkeeper, check out the Xero advisor directory. Lodge activity statements from Xero is now available for free to Australian Xero subscribers who have BAS. Start by connecting your account to the ATO today,

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