How to do a BAS Reconciliation

BAS reconciliation is done at the end of the financial year.  The BAS reconciliation is an EOY process to compare and reconcile the BAS totals in your software with the actual BAS figures lodged with the ATO.    We will take you through the steps to complete a BAS reconciliation.  The BAS reconciliation form will be used with any software . 

Using the BAS reconciliation form

BAS reconciliation form

BAS Reconciliation form

The BAS Reconciliation form (you will find this on your precedents list) needs to be completed at the end of the financial year.  This is a part of the EOFY processes on the Checklist for End of Financial Year Quarter

Okay - this one is fairly easy and I like to have it done in June as it takes between 5-15 minutes off your EOFY checklist routine. By the way, we will cover this in detail on the EOFY Refresher days, but you will need to have one of these done for each of your clients before then. It doesn't matter which software you're using, it's the same form.

Obviously, if you're client is not registered for GST, you don't need to do one of these forms.

Filling out the BAS reconciliation form

Filling out the BAS reconciliation form

So, you will have already pre-filled the BAS reconciliation form for the previous quarters that have been lodged.   You need to write in the   GST on Sales and GST on Purchases, write in the GST amount only.  Then in the GST Paid/Refund column, write in the GST paid amount or the GST refunded amount which needs to have brackets around it, i.e. the amount of GST refunded was (This reminds you to ‘minus’ it.)  Total the first 3 quarters and double check your totals by adding the total GST paid/refunded and the totals for the quarter – add down and across to double check

Okay, it's a little confusing, I know, so review the example here.

The example shows the lodged JULY/SEP figures (which you wrote on your finalisation checklist!)

Calculating the reconciliation form

Making the calculations work


  • Now, get out your calculator and work out the GST that was paid or refunded and write this in the GSTPaid/Refund column, i.e. $9,614 minus $4,130 = $5,484. Do this for each column.
  • The very last thing to do is make sure that all the GST Paid/Refunded column ($5,484 + $2,206 + $2,474 also equal $10,164) is equal to the GST Sales and GST Purchases columns, i.e. $18,669 (total GST collected) minus $8,505 (total GST paid) equals $10,164.
  • If both equal the same amount, then you have made no mistakes in your calculations, place a tick next to this. This way, you will know that you have checked this figure and it is completely correct.
  • Excellent, you will need to do one of these for each of your clients registered for GST - including yourself!

Working out the BAS calculation

Working out the BAS calculation

Your next step is to find the total amount of GST on sales and GST on purchases for the entire year so that this reconciles to your BAS’s lodged.  You will need to run a BAS summary report in your software, select the date range for the entire financial year that you have prepared.  Print this as your proof of the figures and what you have reconciled to.  Transfer these total year figures to your table as the totals. 

It does not matter what the BAS figures now are for the April to June period, your figures that you have calculated on the BAS reconciliation are now the GST figures for the April to June period.  You may need to manually adjust your GST reports with these figures.

Next, you will need to reconcile the sales figures against the profit and loss. Take the total amount of the GST Sales as your basis point. Write this in the space provided, multiply this by 11, then less the GST amount and then this should be what the profit and loss income or turnover is.

Questions

The BAS reconciliation is an integral part of EOY processes

  • The amounts on the BAS reconciliation for each quarter are the figures lodged with the ATO?
  • The BAS figures for June are calculated from the software I am using

Why do we need to do a BAS reconciliation

  • The BAS reconciliation reconciles any adjustments for the year in the June quarter.
  • The BAS reconciliation is to check we have lodged the first 3 quarters
  • We do a BAS reconciliation because the accountant wants it done

Which figure on the BAS reconciliation is the amount due or payable for the June quarter?