Understanding the Effects of Failing GST and BAS Compliance for Brisbane Hospitality Businesses
GST and BAS are two important components of the Australian tax system that each enterprise, including those in the hospitality sector, should observe. Failure to comply can lead to penalties and business interruptions – a business owner’s worst nightmare!
For many business owners in the hospitality industry, the sheer volume of transactions involved in the management of a hospitality business—such as sales to customers, payments to suppliers, wages for employees, and tax invoices for record keeping—can create confusion about what’s taxable, what’s not, and when payments are due to the ATO.
The result? Deadlines for BAS not being satisfied, GST claims submitted in an incorrect manner, and fines that are not needed.
Failing to follow these tax guidelines could cause important financial problems for your business. If your business is in hospitality sector, you will face a prominent risk upon not adhering to GST and BAS rules and here are some of them:
Penalties and Fines: The Australian Taxation Office (ATO) imposes severe penalties on businesses that do not comply with GST and BAS requirements. The penalties add up fast, and it becomes a needless financial burden.
Cash Flow Disturbance: Improperly handling GST can affect your cash flow, because you could overpay or underpay the amount that you owe in taxes, possibly causing important, unforeseen debts.
Tension and Time Loss: Handling BAS compliance involves time, focus on details, and being active with keeping records. A lack of a fitting system may take away from time for customers, employees, and the business's expansion.
Reputation Harm: Not following the rules might also harm the way the ATO and customers see you. If your company establishes a record of insufficient compliance, in addition to that, you could encounter further investigations and also examination that may impede subsequent expansion.
We understand that running a hospitality business is aa hard enough, especially having to keep on top of the ever evolving tax rules and be on top of all the compliances ---- that’s the reason why Evisory is here.
We are fully aware of the specific difficulties that businesses in the hospitality sector encounter about GST and BAS compliance. Our hospitality bookkeeping expertise are specially made for companies like yours in the region, making it simple to meet your responsibilities with ease.
We’ll certainly help you in staying compliant, greatly optimise your finances for you, and allow you to focus on what deeply matters most—growing your hospitality business.
If you feel ready to simplify your GST and BAS procedures today, get in touch with our staff now to find out how our bookkeeping options for hospitality businesses in the Brisbane area can make adhering to regulations straightforward and easy. We can take care of the numbers involved, and you can focus on delivering outstanding customer experiences for customers in general.