If you’ve ever stressed over your Business Activity Statement, you’re not alone. Thousands of Australian businesses make BAS mistakes each quarter, and the ATO issues penalties quickly when things don’t line up. What looks like a simple compliance task is often where the biggest financial risks sit.
Here’s why so many businesses get BAS wrong — and what you can do to get it right every quarter.
The Most Common BAS Mistakes
1. Claiming GST incorrectly
- Claiming GST credits on GST-free items like basic food items or overseas services consumed outside Australia.
- Missing GST credits on legitimate business purchases due to unreconciled bank feeds or missing receipts.
2. Late or missed lodgments
- Forgetting BAS deadlines and triggering ATO Failure to Lodge penalties.
- Lodging without reconciling accounts first, which creates a trail of amendments and wasted time.
3. Poor record-keeping
- Using spreadsheets or outdated systems that don’t track GST accurately
- Not keeping invoices, receipts, and transactions organised in real time.
Why These Mistakes Happen
Most business owners are juggling operations, staff, suppliers, and cash flow. BAS ends up as a rushed task at the end of the quarter. Some lodge it themselves, others hand it off to a bookkeeper without proper checks.
The problem is, BAS isn’t only about ticking a compliance box. It affects:
- Cash flow accuracy
- GST reporting
- How much confidence you have in your numbers
If the BAS is wrong, your financial picture is off too.
How to Get BAS Right Every Time
- Reconcile regularly
Don’t wait until BAS is due. Reconciling weekly or fortnightly keeps your books clean and reduces errors. - Use Xero for real-time coding
Bank feeds and consistent coding in Xero make it easier to track GST correctly and avoid missed credits. - Get a qualified review
Having a CPA accountant or registered BAS agent review your BAS before lodgment can prevent penalties and under- or over-claiming GST.
The Next Step for Your Business
If BAS lodgments are causing stress, errors, or constant fixes, you don’t just need help with one BAS — you need better bookkeeping systems behind it.
You can:
- Review our bookkeeping packages on our dedicated pricing page.
- Book a time with our team to talk through which level of support suits your business.
- When you come on board for ongoing bookkeeping, we include a Xero setup or Xero file health check as part of your onboarding, so your BAS lodgments start from a clean, accurate base.
Clean books, accurate BAS, fewer surprises from the ATO — and more time for you to run the business.
Book your consultation with The Pen Accounting today
At The Pen Accounting, we specialise in helping creative businesses like yours achieve financial success. From bookkeeping to tax advisory and business strategy, our services are tailored to the unique needs of the creative sector in Australia. If you’re ready to take control of your financial records, contact us today and discover how we can help your business grow.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by The Pen Accounting as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.
