BAS Preparation Checklist!
The December 2018 BAS is almost due.
See below for a useful checklist to make sure you are claiming & declaring the correct amounts.
1. Make sure that your bank reconciliation is up to date or at least until the end of December 2018.
• This is done to ensure that all transactions have been taken up in your BAS calculation.
• If you are using a cashbook, your record of receipts and outgoings should reconcile back to your bank statements.
2. When you are recording your expenses, have you made sure that the correct GST code/rate applies on the expenses you are claiming?
• Some suppliers are not registered for GST and therefore GST will not apply. A good way to check this is by referring to the supplier’s invoice or check their ABN number on the ABN Lookup.
• Some GST amounts are not 10%. For example GST on your motor vehicle registration and GST on insurance.
3. Have you made sure that you have taken out any personal expenses or apportioned for private usage?
• Just because the expenses are being paid by the business, does not necessarily mean that the expense is 100% deductible. Mobile phones expenses and motor vehicle expenses are just some examples that may require private usage apportionment.
4. When you are recording your income, have you made sure that you have calculated the GST correctly?
• Depending on the type of services you provide, some may be classified as GST-free sales. This includes childcare services and medical services. For the complete list of GST-free sales, please visit ATO website on GST Free Supplies.
5. If you have employees, this is a good time to make sure that your wages & salaries and superannuation records match up.
• If you are using software that provides payroll, make sure that what’s recorded as wage expenses and liabilities are calculated and allocated correctly. This applies to the superannuation expenses account as well.
• In your payroll liability accounts, it’s a good idea to check that all wages are paid out correctly after each pay run (wages payable should be nil) and importantly, that you are paying your superannuation obligation on time.
6. If you are registered for Fuel Tax Credits (FTC), make sure you are calculating the claim correctly.
• FTC rates can change from time to time, so it is always a good idea to check for the rates each time you prepare your BAS by visiting ATO FTC rates.
• Make sure you enter the dollar value on your BAS and not the number of litres used for the quarter.
Contact CrossCorp for help to improve your bookkeeping system and to prepare your BAS!