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The retail accounting network is poised to lower the barrier of entry for BAS services after reappraising its offering in a bid to help small Australian businesses recover from the pandemic.
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H&R Block doubles down on $99 BAS offering
30 September 2021
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10 minute read
H&R Block on Tuesday announced that it will move to make its BAS service offering more accessible to battling small businesses doing it tough in the wake of the pandemic, which will be able to access the services from $99.
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Mark Chapman, director of tax communications at H&R Block, said completing a BAS is a core part of a business’ compliance requirements, and that by lowering the point of entry for business leaders, his firm was making an investment into Australia’s economic recovery.
“Given that many small businesses have been doing it tough and need all the help they can get, we have reappraised our pricing by making our key offering to small businesses more affordable,” Mr Chapman said.
“At a time when small business is trying to recover from COVID-19, we’re investing in the growth and success of Australians and their small business.”
Mr Chapman reminded business owners that it isn’t only important to be thinking about completing a BAS come tax time, but to be thinking of it throughout the year. The first-quarter BAS due date for the 2021-22 financial year is 28 October.
He said one of the key benefits of using a tax or BAS agent to complete a BAS is that businesses are afforded more time to lodge. Businesses that fail to lodge on time run the risk of being penalised one penalty unit, or $222, for each period of 28 days the lodgement is overdue.
Some 60 per cent of small businesses fail within their first three years, according to the Australian Bureau of Statistics. The largest contributor to that failure, according to one study conducted by the University of Sydney, is financial mismanagement, which accounts for 32 per cent of all business failures.
Mr Chapman said that the best way to combat business failure is for a small-business owner to understand their tax obligations.
“While a lack of cash flow is indeed the number one business killer, there are simple ways to get on top of it,” Mr Chapman said. “The first is to understand your tax obligations, and I recommend engaging a professional to do so.
“Your BAS is a vital part of meeting your compliance requirements with the ATO and is a legal mandate.
“The exercise of completing a BAS, alongside a professional, forces SMBs to focus on the financial side of the business – to grapple with sales, purchases and cash flow.”
However, at the centre of efficient financial management, Mr Chapman said, is record-keeping.
“Remember to keep all your books and records for five years,” Mr Chapman said. “Keeping good records helps you stay on top of your business.
“[These include keeping] records of all sales, fees, expenses, wages and other business costs; stocktake records and motor vehicle logbooks; [and] reconciliations of sales with bank statements.”
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