Top 3 BAS Mistakes Small Business Owners Make (and how to avoid them)
If you’re a small business owner managing your own bookkeeping, chances are you’ve come close to the BAS deadline more than once and perhaps even considered throwing your laptop out the window… On the surface, BAS lodgement should be easy – especially if your records are up to date. But we regularly see the same three mistakes made by business owners trying to DIY their BAS and they can cost time, money and even trigger ATO issues.
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Lodging BAS from unreconciled data
This is by far the most common mistake we see. If your bank accounts and credit cards haven’t been fully reconciled before you lodge, it’s very likely that your BAS will be incorrect. Even if you’ve matched transactions in your accounting software, it’s not truly reconciled until you’ve compared it with the actual bank statement and closed out any discrepancies.
Why it matters: GST can’t be right if your figures aren’t. Lodging from unreconciled data could mean underpaying or overpaying GST and neither is a good place to be.
What to do: Make sure all accounts are fully reconciled before hitting “lodge.” If in doubt, we can run a quick health check on your file or offer one-off training to help you get this right.
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Using the wrong GST codes (especially for contractors & imports)
We often see business owners claim GST where they shouldn’t – especially on contractor invoices or imported goods.
Common issues include:
- Claiming GST from contractors who aren’t registered or don’t have a valid ABN
- Entering imports incorrectly and missing out on claiming the right GST
- Not matching GST amounts to the invoice details
What to do: If you’re unsure, check the ABN on the invoice using the ABN Lookup tool. And if GST isn’t charged on an invoice, it can’t be claimed. Simple as that.
We offer one-on-one training sessions to walk you through your specific transactions and make sure your GST is spot on.
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Manual journal entries that don’t include GST
If you’ve fixed a transaction using a manual journal (a common workaround), it’s easy to forget to apply the GST code correctly.
Why it matters: These journal entries won’t show up in your BAS reports unless they’re coded correctly. This is a subtle but important way businesses miss GST – either not claiming what they’re entitled to, or claiming too much.
What to do: Double-check any manual entries, or better yet, have us review your file before lodgement. A quick review can save a lot of hassle.
If your bookkeeping is up to date and your data is clean, BAS lodgement becomes a quick, simple task. But if things are messy or you’re not 100% sure – you’re not alone.
We help small business owners:
- Fully outsource their bookkeeping (including BAS)
- Receive one-off training sessions to upskill
- Clean up messy files with a one-time review and fix
We hope these tips help. Still need help with your BAS? Book a quick call or training session with us below. Whether it’s a one-time check or ongoing support, we’re here to help you lodge with confidence. You can also contact us here.
