Common errors when completing BAS
It may be surprising to you that many BAS’s that are lodged either electronically or by paper (that is being phased out), are lodged with common errors.
Here is a list of some of the more common errors that are reported by the ATO:
The value of wages and superannuation being reported under the label G11 on the BAS. This is incorrect. G11 should only be used for expenses of the business that have a GST code. Gross wages should only ever be reported under the label W1 Superannuation paid should not be reported at all on the BAS.
Labels that have do not have a value on the BAS, should be reported using a zero on the label. This is important under the labels 1A, 1B and 9.
Many small business owners forget to include any cash monies that are taken from the business cash register for the use of purchases i.e., petty cash. Any cash taken from the till needs to be recorded as a sale – even if the money has been used for an expense. This is reported under G1. Also, don’t forget to include the transition of the expense – this should be included in the G11 label.
Report transaction values in the correct accounting method. Check on your BAS as to the correct accounting method to use, whether cash or accrual. To help with the correct reporting ensure that your software is set using the correct accounting method – this can be done within the company / file setting of the software. Generally, businesses that have an annual business turnover of $2million of less tend to be reported on a cash basis.
Only report whole dollars – do not put cents in the individual labels. Make sure all figures are rounded to the nearest dollar.
One-way way to avoid any errors is to engage a Registered BAS Agent.