in Small Business
Issue No. 1 - July/August 2001
Besting the BAS
It is relatively easy to solve the problem of efficiency when managing the Business Activity Statement, but more difficult to help small business to find sufficient funds to go along with the return without causing the ruin of the business.
It is now 12 months since the introduction of the GST and many small businesses have had to complete at least four BAS returns, enduring all the associated difficulties, frustrations and costs. This is despite the Australian Taxation Office’s avalanche of information in the form of printed material via post, television advertisements, telephone ‘help’ lines, seminars and field officers. So, why is there so much confusion and anger within the small business community regarding the completion of this one relatively simple form? The answer is far more complex.
Small business is as diverse as the fishes in the sea. The owner—manager is often the sales manager, secretary, stock control officer, PR officer, cleaner and financial officer all at the same time, plus much more. His/her time is limited, as is often the formal training in accounting procedures. Most have gained sufficient knowledge for the day—to—day needs of the business and for the periodic needs of their accountants. All have used accounting systems with which they felt comfortable and have understood.
As GST loomed, suddenly they were being told that their systems would be inadequate under the new tax regime; this news was followed by a veritable deluge of financial packages flooding the market, leaving most bewildered as to the best system for their business, given the unknowns of the New Tax System’s impact.
Many systems that hit the market capitalised on this ‘captive’ nature of the market, and its confusion. There was a huge push from software manufacturers, government and other forces to computerise accounting procedures (in itself not necessarily a bad thing) which, together with the need to ‘cash in’ t...
