Small business records to review before BAS time

Reconcile the bank, card, and loan accounts first

Everything else depends on this. Reconcile each account to its statement so the closing balances agree. Unreconciled accounts hide duplicated transactions, missing income, and personal spending that should not be in the file — all of which distort the GST figures before you even begin.

Confirm sales are complete across every channel

Income is where under-reporting most often happens by accident. If sales flow in through an EFTPOS terminal, an online store, a marketplace, and occasional cash, each stream needs to be captured and reconciled to the bank deposits.

Match invoices and point-of-sale reports to what actually landed in the account, and account for refunds and merchant fees so the net figures are right.

Check purchases have valid tax invoices

You can only claim GST credits where the purchase carried GST and you hold the right evidence. For purchases over $82.50 including GST, that means a valid tax invoice from the supplier. Watch for the usual traps:

• Bank fees, interest, and government charges that carry no GST.
• Purchases from suppliers who are not registered for GST.
• GST-free items coded as though GST applied.
• Large or unusual invoices that need a closer look before they are claimed.

Review payroll, PAYG withholding, and super

If you have staff, the wages, PAYG withheld, and superannuation for the period should be checked before the BAS is prepared. PAYG withholding reported on the BAS needs to match your payroll records.

Superannuation is worth special attention: it is generally only deductible in the year it is actually paid to the fund, not simply when it is accrued. Timing super contributions carefully around period end affects both the deduction and your obligations.

Good to know — Paying employee super on time is not just about the deduction — late contributions can lose their deductibility and trigger additional obligations, so it is one to stay ahead of.

Give context to finance and mixed-use costs

Loans, hire purchase, and chattel mortgages need care because only part of each repayment is usually an expense, and the GST on a financed asset is often claimed differently from the ongoing repayments. Motor vehicles and other assets used partly for private purposes need a reasonable apportionment. Flag these for review rather than assuming the default coding is right.

Separate owner drawings from wages

For many small businesses, money the owner takes is drawings, not a wage, and it is not a deductible expense or subject to PAYG withholding in the same way. Keeping drawings clearly separate from staff wages keeps both the BAS and the year-end accounts clean.