One of the most difficult aspects of owning a business is managing finance admin, especially ATO Business Activity Statements (BAS) and their obligations. There are consequences if BAS is not submitted on time, and businesses may fall subject to interest penalties.
Factoring invoices can help businesses meet their obligations with the ATO and pay the next quarterly payment [due on 28-April] on time.
Key Factors can help businesses get on top of their ATO obligations through factoring invoices.
Factoring invoices with Key Factors
Factoring invoices couldn’t be simpler with Key Factors, allowing you to release cash from your invoices with 3 easy steps:
- Invoice your clients and send Key Factors a copy
- Key Factors will transfer up to 80% of the invoice value to you in as quickly as 4 hours.
- Key Factors will credit you the remaining 20% less any accrued fees, when your customer pays us.
Getting On Top of ATO Obligations:
The business owner has specific responsibilities when it comes to getting on top of ATO obligations. We’ve outlined 4 useful tips provided by the ATO below:
1. Take responsibility
It is assumed that reasonable care is taken to meet your obligations – to provide accurate and complete information in all documents, including activity statements and tax returns.
2. Keep all required records for 5 years
Whether you’re a small business or not, you are required, by law, to retain the required business records. If you are unsure of what these records are, a full list can be found on the ATO website, depending on your business dealings. It is worth noting, that such records need to be kept for five years, and must be in English.
3. Lodge BAS by the due date
There are certain cut-offs to lodge most documents, and harsh penalties apply if they are lodged past the due date. However, if there are genuine reasons, as to why you are having difficulty adhering to these dates, or you cannot pay the amount owing on time, you must get in contact with the ATO prior to the due date to discuss your options. In some cases, extra time may be given to lodge and/or pay. Keep in mind that both tax returns and activity statements must be lodged on time, even if the amount owing cannot be paid at that time.
4. Pay by the due date
As per the previous point, all taxes and other amounts owed must also be paid by their respective due dates. Extra time to pay may be granted by the ATO in extenuating circumstances, potentially without interest charges – and only if the ATO are made aware your situation prior to the due date.
Advantages Of Factoring Invoices
The main advantage of factoring invoices is it allows businesses to get access to immediate payment, instead of waiting for up to 90 days for their clients to pay. Businesses can use the funds to get on top of their ATO obligations, pay staff on time, hire more employees to expand, and operate more efficiently.
Unlike traditional business loans or overdrafts where funding can be quite restricted, factoring invoices is more aligned to your revenue, so the more sales you make the more cash you can get.
Factoring invoices is also a quick and simple process, and funding can occur in as quickly as 4 hours.
With offices in Perth, Sydney, and Melbourne, our local State managers can provide a tailored cash flow solution to suit your business.
Contact us at Key Factors, on 1300 884 100 and a local state manager will be more than happy to discuss your needs and provide you with a quote to suit your requirements today.