Why this matters
BAS (Business Activity Statement) generation is essential for GST reporting and compliance with the Australian Taxation Office. This process automatically calculates GST collected, GST paid, PAYG instalments, and other tax obligations based on your categorized transactions, ensuring accurate and timely tax reporting.
Prerequisites
- You must be logged in as an Owner or Administrator
- Have an entity registered for GST
- Have transactions categorized with proper GST treatment
- Ensure all transactions for the period are properly categorized
Steps
1. Navigate to Activity
Go to Activity → Select your entity → Select the BAS period you want to generate
2. Review BAS Requirements
Check the BAS requirements section to understand what needs to be reported:
- GST Registration - Confirm entity is registered for GST
- Reporting Period - Verify the correct period dates
- Transaction Coverage - Ensure all transactions are included
- GST Treatment - Confirm transactions have proper GST categorization
3. Calculate BAS Figures
Generate the BAS calculations from your transaction data:
- Click Calculate BAS to process all transactions
- System automatically categorizes transactions by BAS groups
- Calculates GST collected and GST paid amounts
- Determines PAYG instalment amounts
- Identifies any transactions requiring review
4. Review Transaction Categorization
Examine how transactions are categorized for BAS reporting:
Income Transactions:
- GST Sales - Sales with GST included
- GST-Free Sales - Sales without GST (exports, basic food)
- Input Taxed Sales - Sales where GST is not charged (residential rent)
Expense Transactions:
- Capital Purchases - Business assets and equipment
- Non-Capital Purchases - Operating expenses and supplies
- GST-Free Purchases - Purchases without GST
5. Review BAS Summary
Check the calculated BAS figures:
GST Breakdown:
- GST Collected - Total GST on sales and income
- GST Paid - Total GST on purchases and expenses
- Net GST - Difference between collected and paid
PAYG Information:
- PAYG Instalment - Estimated income tax instalment
- PAYG Withholding - Tax withheld from payments
- Total PAYG - Combined PAYG obligations
6. Review Individual Transactions
Examine the detailed transaction breakdown:
Income Transactions Table:
- Date, Description, Group, BAS Group, Value, GST
- Verify correct BAS group assignment
- Check GST calculations are accurate
- Identify any transactions that need manual adjustment
Expense Transactions Table:
- Date, Description, Group, BAS Group, Value, GST
- Confirm expense categorization is correct
- Verify GST treatment matches business use
- Check for any personal expenses that should be excluded
7. Make Manual Adjustments (if needed)
If any transactions need correction:
- Click on individual transactions to review details
- Update GST treatment if incorrect
- Adjust BAS group assignment if needed
- Exclude personal or non-business transactions
- Recalculate BAS figures after adjustments
8. Save BAS Figures
Once satisfied with the calculations:
- Click Save BAS Figures to store the results
- Figures are saved to the BAS period record
- Can be retrieved and modified later if needed
- System maintains audit trail of changes
9. Mark as Complete (Optional)
When ready to finalize:
- Check Mark as Complete if this is the final version
- Completed BAS periods cannot be easily modified
- Use this when you're ready to lodge with the ATO
- Can still be modified if needed, but requires uncompleting
10. Generate BAS Report
Create a printable BAS report:
- Click Generate Report to create the final report
- Report includes all calculated figures and transaction details
- Can be printed or saved as PDF
- Use this report for ATO lodgement or record keeping
Expected Results
- BAS figures are calculated and saved
- All transactions are properly categorized for BAS reporting
- GST collected and paid amounts are accurately calculated
- PAYG instalment amounts are determined
- Printable BAS report is available for lodgement
Example
Generating a Quarterly BAS:
- Period: 1 July 2024 - 30 September 2024
- GST Collected: $2,500.00
- GST Paid: $1,800.00
- Net GST: $700.00
- PAYG Instalment: $1,200.00
- Total Amount Owed: $1,900.00
- Transactions Processed: 45 income, 32 expense
Troubleshooting
- No transactions found → Check that transactions are properly categorized and within the period
- GST calculations seem wrong → Verify GST treatment is set correctly on transactions
- Missing transactions → Ensure all bank feeds are imported and categorized
- PAYG amount seems incorrect → Check entity's PAYG instalment rate and income estimates
- Can't save BAS figures → Ensure you have edit permissions and all required fields are completed
What Can Go Wrong
- Incorrect GST treatment → May result in wrong GST calculations and ATO penalties
- Missing transactions → Could lead to underreporting and compliance issues
- Wrong BAS group assignment → May affect GST calculations and reporting accuracy
- Personal expenses included → Could result in incorrect GST claims and penalties
- Incomplete categorization → May cause transactions to be excluded from BAS calculations
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