What Happens Behind the Scenes Before We Lodge Your BAS
For many business owners, the BAS can appear quite simple from the outside.
The quarter ends, the figures are prepared, the BAS is signed and then it is lodged.
But there is a lot more happening behind the scenes before we are comfortable putting our name to a BAS lodgement.
At Love Bookkeeping, preparing a BAS is not simply a matter of opening Xero, running a report and accepting the figures that appear on the screen. The numbers need to be checked, reviewed and considered in the context of the business before the BAS is ready to lodge.
It Starts With Making Sure the Bookkeeping Is Complete
Before we can properly review a BAS, we first need confidence that the underlying bookkeeping is up to date.
That means ensuring transactions for the period have been reconciled and checking that the balances recorded in Xero agree with the actual bank records.
This is an important distinction.
Accounting software is only as accurate as the information entered into it. A bank account showing as “reconciled” does not automatically mean everything within the file is correct.
Bank statements provide an independent point of reference and help us confirm that the accounting records reflect what has actually happened.
We Look at the Business as a Whole
A BAS review is not limited to GST transactions.
We review the Balance Sheet and Profit & Loss to identify balances, movements or transactions that do not look right or require further investigation.
For example, balances sitting in suspense accounts can indicate transactions that have not yet been properly allocated. Payroll and superannuation balances can highlight timing differences or issues requiring review. ATO accounts may need to be considered against amounts already lodged or paid.
Where appropriate, other balances such as business loans may also need to be considered.
This is where experience matters.
It is often not the obvious error that causes a problem. It is recognising that a figure looks unusual for that particular business and knowing where to investigate next.
GST Requires More Than Applying 10%
One of the most important parts of BAS preparation is reviewing how GST has been treated throughout the period.
GST in Australia is not simply a matter of applying 10% to every business expense.
Different transactions can have different GST treatments, and there are plenty of situations where the GST component is not immediately obvious.
Insurance, motor vehicle registration, financial transactions, overseas purchases and certain government charges are just some examples where the GST treatment may require closer attention.
We also review supplier details and, where necessary, check ABNs and GST registrations to help determine whether GST has been correctly claimed.
This requires knowledge of GST rules as well as professional judgement. Software can assist with processing transactions, but it does not replace understanding what the transaction actually represents.
The Numbers Need to Agree
Once the bookkeeping and GST coding have been reviewed, we complete further cross-checks across the BAS figures.
This involves making sure the amounts being reported for GST, wages and other relevant obligations are consistent with the underlying accounting and payroll records.
We also consider whether adjustments from previous periods need to be included.
These checks are an important safeguard because individual transactions can appear correct while the overall BAS position is not.
Looking at the figures from several different angles helps identify discrepancies before anything is lodged with the ATO.
BAS Agent Review Adds Another Layer of Oversight
Before a BAS is issued to a client for approval, it goes through BAS Agent review.
This is not simply a final glance at the total payable or refundable.
The review considers the GST treatment, supporting calculations, reconciliations, adjustments and the overall BAS workbook to ensure the lodgement is supported by the records we have reviewed.
As registered BAS Agents, we have professional obligations around the work we perform and the statements we lodge on behalf of our clients.
That responsibility is something we take seriously.
Then We Need Your Approval
Once the review process is complete, we prepare the relevant reports and BAS documentation and send them to the client for review and signature.
We also monitor upcoming lodgement deadlines and follow up where approvals are outstanding.
It may sometimes feel like we are chasing you for a signature, but there is a good reason for it: we want to make sure your BAS is lodged on time and that unnecessary late lodgement issues are avoided.
Once the BAS has been lodged, we provide the payment details so you know exactly what needs to be paid and when.
Why This Process Matters
A BAS lodgement represents more than three months of transactions condensed into a handful of numbers.
Those numbers can affect your GST liability, payroll reporting, cash flow and ATO account.
That is why we do not rely solely on what the accounting software tells us.
Good BAS preparation combines accurate bookkeeping, careful review, technical knowledge, professional judgement and appropriate BAS Agent oversight.
Automation and accounting software are incredibly useful tools, but they cannot replace an experienced person looking at the records and asking:
Does this actually make sense?
That question is often where the real value of professional bookkeeping begins.
At Love Bookkeeping, our goal is not simply to lodge your BAS. It is to make sure the numbers behind it have been properly reviewed before we do.
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