When it comes to running a business, there are a lot of moving parts to manage. One of the most important responsibilities for any Australian business owner is ensuring accurate Business Activity Statement (BAS) reporting. Unfortunately, BAS errors are more common than you might think, and they can result in penalties, lost money, and unnecessary stress.
As a trusted Gold Coast bookkeeper and registered BAS agent, Flexible Financial Solutions has helped countless business owners avoid costly mistakes and stay compliant with the ATO. In this post, we’ll walk through the 5 most common BAS reporting errors and how to avoid them.
1. Incorrect GST Reporting
GST reporting errors are by far the most frequent issue we see with new clients. Whether it’s claiming GST where there shouldn’t be any, or failing to report GST on taxable sales, the result can be costly.
Common examples include:
- Claiming GST on purchases from suppliers who aren’t registered for GST.
- Not charging GST on services where it is required.
- Including GST-free sales in the wrong category on your BAS form.
How to avoid it:
Always verify that your suppliers are GST-registered, and double-check the GST codes used in your accounting software. Having a professional Gold Coast bookkeeper review your GST transactions regularly can prevent these mistakes.
2. Incorrect PAYG Withholding Amounts
If you have employees, you’re required to withhold and report PAYG tax on their behalf. Incorrect reporting can lead to underpayments, penalties, or even employee disputes.
What goes wrong:
- Using incorrect tax tables.
- Misclassifying contractors as employees (or vice versa).
- Forgetting to report all wage payments.
How to avoid it:
Use the ATO’s updated PAYG withholding schedules, and keep accurate, up-to-date records. When in doubt, work with a BAS agent who understands payroll compliance thoroughly.
3. Missing Deadlines
The ATO doesn’t take kindly to late BAS submissions. Penalties and interest can accumulate quickly, especially if you’re lodging quarterly and falling behind.
Why it happens:
- Lack of bookkeeping processes.
- Forgetting lodgement dates.
- Overwhelmed business owners with no administrative support.
How to avoid it:
Automate reminders in your calendar or accounting software, and consider outsourcing to a Gold Coast bookkeeper who can stay on top of your lodgement dates. Flexible Financial Solutions offers a fully managed BAS service that ensures you never miss a deadline.
4. Mixing Personal and Business Expenses
Blurring the lines between personal and business spending is another common mistake that can lead to incorrect BAS claims.
Examples include:
- Claiming GST credits on private purchases.
- Using a business credit card for personal use.
- Not separating bank accounts for business and personal finances.
How to avoid it:
Maintain separate bank accounts for business and personal use. Reconcile all business transactions carefully and review your BAS with a registered BAS agent to ensure personal expenses are excluded.
5. Failing to Reconcile Before Lodging
One of the most preventable – but often overlooked – mistakes is failing to reconcile your accounts before lodging your BAS.
What this can cause:
- Duplicated expenses or income.
- Misstated GST obligations.
- Unreliable business performance metrics.
How to avoid it:
Reconcile your bank accounts, review your chart of accounts, and perform a final review of all transactions. Your Gold Coast bookkeeper should be doing this as standard before any BAS lodgement.
Why Professional Help Matters
Even if you’re using cloud accounting software like Xero or MYOB, automated systems only work as well as the data you input. That’s why it’s essential to have a qualified bookkeeper who understands not just the software, but also the ever-changing ATO regulations.
Flexible Financial Solutions is more than just a Gold Coast bookkeeper. We are registered BAS agents with a passion for helping local businesses gain clarity and control over their finances.
What You Get With Flexible Financial Solutions:
- BAS prepared and lodged accurately and on time
- Expert Xero training and setup support
- Comprehensive reconciliation and error checking
- Proactive advice on compliance and savings
- Peace of mind knowing your books are in trusted hands
Final Thoughts
BAS reporting isn’t just a formality — it’s a vital part of running a compliant and successful business. By avoiding these five common mistakes, you protect your business from penalties and gain better financial visibility.
Don’t leave it to chance. Partner with a professional who’s seen it all and can keep your books clean and compliant.
Ready to Avoid BAS Errors for Good?
Contact Flexible Financial Solutions today and let a registered Gold Coast bookkeeper and BAS agent handle your BAS the right way.
Call us now or Visit our website to book a consultation.
Take the stress out of BAS and bookkeeping — let’s make your numbers work for you!
