Before you lodge your BAS with the ATO, you should:
- Check that your BASlink information and fields have been set up correctly.
- Check your BAS for errors and incomplete information.
- Reconcile BAS amounts with transaction amounts.
This support note steps you through these checks. For help setting up or completing your BAS or IAS, see the AccountEdge help.
There are a number of reports to assist you in checking the set up of your activity statement. To access these reports, open your BAS form using BASlink and go to the Reports menu.
Here's some extra info about these reports.
When preparing your BAS, you should check that your BAS information is set up correctly. You can do this by printing the Setup Details report.
This report lists the selections you made in the BAS Information window for each section of your activity statement. It shows your reporting frequency, accounting basis, reporting option (if applicable) and reporting period. Review this information to ensure that your BASlink information is set up correctly.
To change the setup information
- Go to the Accounts command centre and click BASlink. The BASlink window appears.
- Click BAS Info. The BAS Information window appears.
- Specify your activity statement information.
- Click OK.
These reports show how the amount in each field in BASlink has been calculated. The summary report lists each BASlink field, the tax codes linked to it and the GST amounts for each tax code. The detail report also shows rounding and manual adjustments.
Print the Audit report to check that the correct tax codes have been linked to each BAS field. Note that you may need to consult your accountant about which taxes to report in each field. To link a tax code to a field, see 'To link a tax code to a field', below.
You can also use the Audit reports to check that activity statement field amounts have been calculated correctly.
For example, a difference between the amount in the Summary Report Default Value column (the value recorded in your software for each tax code that has been linked to the field) and the Reported Value column (the amount displayed in the field in BASlink) could indicate:
- an amount changed incorrectly in BASlink
- a sales return or credit (which you've accounted for in BASlink by manually adjusting the G1 field amount) is yet to be recorded in your software.
This report lists all tax codes that have not been linked to any of the fields on the activity statement. Review this report to check if there are any tax codes that have not been reported on the activity statement. The report also lists accounts with reportable amounts that have not been linked to the T1 field.
To link a tax code to a field
- In the BASlink window, click Setup next to the field you want to edit. The Field Setup window appears. To view a description of the field, click Help.
- Select the tax code you want to link to the field.
- Click OK.
- In the BASlink window, click Check. The Error List window appears. If there are any errors, for example, a field has not been completed or it has an invalid amount, the error appears detailing the error and the field name.
- Click Help for an explanation of the errors listed.
- To fix an error, click the zoom arrow next to it. The BASlink window reappears, showing the relevant field on your activity statement where you can make the corrections.
There are a number of reports you can access to help you reconcile amounts appearing on your BAS with transaction amounts entered in the period.
To display and print reports
- In any command centre, go to the Reports menu and choose Index to Reports. The Index to Reports window appears.
- Select the report you want to display or print and click Display. The Report Display window appears.
- Click Customise. The Report Customisation window appears.
- Select a date range for the report and, if you want, refine the appearance of the report.
- Click Display or Print.
Reconciling GST amounts
To reconcile the Goods and Services Tax section of the BAS, you should check that:
- the GST Collected and GST Paid amounts on your BAS match the corresponding amounts in the GST Summary report
- the GST Collected and GST Paid amounts on your BAS match the GST Collected and GST Paid linked accounts (if you report GST on an accrual basis)
- the GST Collected and GST Paid linked accounts reconcile.
To check your BAS GST amounts match those in the GST Summary report
- Print the GST Summary report. This report is available in the GST/Sales Tax tab of the Index to Reports window.
- Select GST (Summary - Accrual) if reporting on an accrual basis, or GST (Summary - Cash) if you are reporting on a cash basis.
- Check that the GST Collected (G9) and GST Paid (G20) figures on your BAS match the Tax Collected and Tax Paid figures on the GST Summary Report. You may also need to check the individual amounts reported for each tax code at each G field.
If the figures in the GST Summary Report don't match the BAS
- Check that the report filters for the GST Summary report are the same as those set for the BAS. For example, check that BASlink and the GST Summary report have the same date range and the same reporting basis (cash or accrual). Note: Ensure you have the correct financial year selected in the BASlink filters. For example, if you have your financial year setup from July 2010 to June 2011, when you create your quarterly BAS for July - September 2010 you need to select FY 11, as you are reporting for a period in the 2011 financial year.
- Check the BASlink setup. See the 'Check your BAS information' section.
Check if tax amounts have been manually changed in transactions
A difference between the BAS figures and GST reports can occur if any tax amounts have been changed manually on transactions recorded during the period.
To check if any tax amounts have been manually changed, run the Tax Amount Variance report. Note that you will need to run the report twice, once for Sales/Receipts Variances and once for Disbursements Variances.
To correct tax variances
If a transaction appears on the Tax Amount Variance report, you need to open the transaction and, if necessary, change the tax value to its correct value.
- Click the transaction on the report to open the original transaction.
- Click the Tax zoom arrow. The Tax Information window appears.
- Click Recalculate and OK.
To reconcile the PAYG Instalment section of your BAS, check that the amount in T1 in the BASlink and the Total Income amount of applicable income accounts in your Profit and Loss Statement are the same. The Profit and Loss Statement is available in the Accounts tab of the Index to Reports window.
- If you report your PAYG Instalment on an accrual basis, print the Profit and Loss (Accrual) report.
- If you report you PAYG Instalment on a cash basis, print the Profit and Loss (Cash) report.
Note that if you have selected any Other Income accounts at T1, you should add the amounts for these accounts to the Total Income figure on the Profit and Loss statement.
If you do not have subcontractors under Voluntary Withholding agreements, check that:
- the amount in W1 in BASlink matches the total of the applicable wages payroll categories the Wages column in the Payroll Activity (Summary) report.
- the amount in W2 matches the total in the column (note that this total may include voluntary withholdings and other special withholdings, such as an ETP tax).
- the amounts in W3 and W4 match the totals for the applicable tax codes in the Tax Information Reconciliation (Summary) report.
If these amounts do not match:
- Check that the correct wages payroll categories have been linked in W1 and W2. Take into account any amounts related to Voluntary Withholdings.
- Check that the correct withholdings tax codes have been linked to W3 and W4.
- Exit BASlink and re-run it to correct any amounts that may have been manually altered.
Once you are satisfied that your BAS is complete and correct, and that BAS amounts reconcile with your reports, you can then finalise and lodge your activity statement with the ATO. For detailed procedures for performing these tasks, see the AccountEdge help.
Make sure you LOCK the BAS period
This step is vital so that no changes can be made in the period for which you have lodged your BAS. Adding payments which are dated within that period won't be included on you next BAS. If you find an error or receive a Bill or Payment dated in the previous period, enter it with a date of the first day of the next BAS period.
To lock a period
- Go to Setup menu and choose Preferences.
- Click the Security tab.
- Select the option Lock Period.
- In the date field for this option, select last day of the BAS period for which you have completed you BAS Statement.
- Click OK.