It’s easy to make a mistake when preparing your BAS. That’s why a certified bookkeeper/BAS Agent would be valuable in ensuring the ATO reporting is correct.
- Many business owners make mistakes on the Hire purchases/Lease of Vehicles or Plant & Equipment on their BAS.
- Incorrect tax codes in your chart of accounts – this affects the reporting on the BAS.
- Claiming GST on ALL expenses when some do not have GST. For example – Bank fees, ASIC fees, Motor vehicle registrations and other expenses.
- Claiming GST against ALL sales. Some services and products in the medical and health care areas do not include GST.
- Wages are to be reported as W1 and not as purchases.
- Forgetting to include all cash sales and purchases. You can be in a lot of trouble if you do not declare ALL cash payments.
- Claiming GST for private purchases.
- Not including capital sales in G1 for (Total Sales). This includes the sale of motor vehicles, a trade-in or office equipment.
- Claiming GST credits on purchases where the supplier is not registered for GST. Some suppliers still charge GST (in error) when they are not registered for GST. Suppliers must supply you with a Tax invoice by law that shows the GST. If you’re not sure, check the supplier’s ABN for their GST registration on the ABN lookup page.