Every quarter (or month, if you’re on that cycle), thousands of Australian small business owners lodge their Business Activity Statement. Some do it themselves, some hand it off to their bookkeeper or accountant, and some… well, some just hope for the best.
But here’s the thing: there’s a big difference between simply lodging a BAS and actually reviewing one properly. Today, we’re pulling back the curtain on what happens during a proper BAS review – and why skipping this step could cost you.
More Than Just Pushing Numbers to the ATO
Let’s be honest. For many business owners, the BAS feels like just another compliance box to tick. Get the GST figures in, report your PAYG, hit submit, move on with your life.
But a thorough BAS review is actually one of the best financial health checks your business can get. It’s a regular opportunity to catch errors, spot trends, and make sure you’re not accidentally setting yourself up for a nasty surprise down the track.
The Real Purpose of a BAS Review
When we review a BAS at Empire, we’re not just checking that the numbers add up (though obviously, that’s important). We’re looking at the bigger picture of your business finances.
Think of it like a mechanic doing a service on your car. Sure, they change the oil – but they also check the brakes, look under the bonnet, and flag anything that might cause problems later.
What We Actually Look For
So what does a proper BAS review involve? Here’s what’s happening behind the scenes.
1. Reconciliation Checks
First up, we make sure your bank accounts, credit cards, and any other financial accounts are properly reconciled. If there are unreconciled transactions floating around, that’s a red flag that something might be coded incorrectly or missing entirely.
2. GST Accuracy
Are you claiming GST on things you shouldn’t be? Missing GST credits you’re entitled to? We check that GST has been applied correctly across your transactions. Common mistakes include claiming GST on bank fees, insurance, or wages – none of which include GST.
3. Unusual Transactions
Sometimes things get coded to the wrong account, or a personal expense sneaks into the business books. A good review picks up anything that looks out of place and queries it before lodgement.
4. PAYG Withholding Accuracy
If you’ve got employees, we check that your PAYG withholding figures match what’s been reported through Single Touch Payroll. Discrepancies here can cause headaches come EOFY.
5. Comparison to Previous Periods
We look at how this quarter compares to previous ones. A sudden spike or drop in GST collected or paid can indicate something’s changed in the business – or that something’s been entered incorrectly.
Why This Matters More Than You Think
Alright, so we check a bunch of stuff. Why should you care?
Avoiding ATO Attention
The ATO uses data matching and analytics to flag businesses with unusual BAS patterns. Consistent errors or mismatches between your BAS and other lodgements (like STP or your tax return) can trigger reviews or audits. A proper BAS review helps keep your records squeaky clean.
Better Cash Flow Planning
When you know your BAS figures are accurate, you can plan your cash flow with confidence. No more nasty surprises when a bigger-than-expected bill lands, or scrambling because you forgot about that GST payment.
Catching Problems Early
Regular reviews mean problems get spotted early, when they’re still small and easy to fix. Leave them too long and you might be looking at amended BAS lodgements, interest charges, or worse.
Peace of Mind
There’s something to be said for knowing your books are in order. When you’ve got a professional set of eyes checking things each quarter, you can focus on running your business instead of worrying about compliance.
DIY vs Professional Review
Can you review your own BAS? Sure, if you know what to look for. But most business owners are (understandably) too close to the day-to-day to spot patterns or errors easily.
Having someone external review your BAS brings fresh eyes and professional expertise. We’ve seen hundreds of BAS lodgements across all sorts of industries – so we know what ‘normal’ looks like and can quickly spot when something’s off.
How Often Should You Do This?
Ideally, every single BAS period. Whether you lodge monthly or quarterly, building a review into your process ensures nothing slips through the cracks.
Even if you’re doing your own bookkeeping, having a professional review before lodgement can save you time, money, and stress in the long run.
Let’s Make Your Next BAS Stress-Free
At Empire Accounting and Finance, we don’t just lodge your BAS and call it a day. We dig into the details, check for issues, and make sure your records are rock solid before anything goes to the ATO.
If you’ve been winging it with your BAS or just want that extra layer of confidence, we’d love to help. Book a chat with the Empire team today and let’s get your business finances sorted – one BAS at a time.
