Preparing your first business activity statement (BAS) can feel like one more thing to figure out while running a business. Start with the period shown on your BAS, then gather the records below. If you use Xero, keeping your bank reconciliation up to date makes the review easier.
1. Check the entity, reporting period and due dates
Open the BAS for the correct ABN and confirm the period it covers. Check the lodgment and payment due dates shown for your business, and confirm whether you account for GST on a cash or non-cash basis. Your statement may also include PAYG withholding or PAYG instalments, depending on your registrations and circumstances.
2. Gather sales and expense records
Have your sales invoices, supplier tax invoices, receipts and any credit notes ready. If you take payments through a card terminal or an online platform, keep its sales and settlement reports. For example, a $970 deposit might be a $1,000 sale less a $30 processing fee. The settlement report helps your accountant see both amounts.
3. Reconcile your accounts and flag unusual transactions
Check that your accounting records match the bank and credit card statements for the period. Flag transfers between your own accounts, owner contributions or drawings, loan proceeds, large equipment purchases and expenses with both business and private use. These often need different treatment from everyday sales and expenses. If a GST code is uncertain, flag it for review before lodgment.
4. Include payroll reports if you employ staff
Have the payroll summary and the amounts withheld from wages ready for the relevant period. Tell your accountant about any payroll corrections, reversals or off-cycle payments so they can check the figures before the BAS is lodged.
5. Do a final check before lodging
Check for missing statements, invoices or unreconciled transactions. If there was no activity, check whether you still have an outstanding BAS. The ATO says a nil BAS still needs to be lodged when one is due. Once lodged, keep a copy and make a note of the payment due date if there is an amount payable.
Need help with your first BAS? Contact I H Professionals & Co. to discuss your reporting period and what records to prepare. We can let you know how to share them securely.
This checklist is general information. Your reporting obligations depend on your registrations and circumstances.
Source: Australian Taxation Office, BAS and GST tips. https://www.ato.gov.au/api/public/content/0-9fc804ad-a043-4a35-b540-16b71d9ca9bf