Common BAS Errors to Avoid in 2025

Navigating Business Activity Statement (BAS) requirements can be a daunting task for business owners, but it doesn’t have to be. As a BAS Agent, I’ve seen common mistakes businesses make that can lead to penalties, stress, and wasted time. In 2025, staying informed about these pitfalls and how to avoid them is crucial. Here’s a guide to the most common BAS errors and how TR Accounting Services can help ensure your BAS lodgment is smooth and accurate.

1. Incorrect GST Reporting

One of the most frequent errors is misreporting GST on sales and purchases. This can happen due to:

• Forgetting to include GST for taxable sales.

• Claiming GST credits for expenses that don’t qualify.

• Confusion about GST-free or input-taxed sales.

How We Help: We review your transactions carefully to ensure GST is applied correctly, reducing the risk of overpayments or penalties.

2. Missing Deadlines

Failing to lodge your BAS on time can result in hefty fines from the Australian Taxation Office (ATO). This often happens when business owners are overwhelmed or lack proper reminders.

How We Help: We keep you on track with reminders and timely lodgments, so you never miss a deadline.

3. Incorrect Classification of Transactions

Misclassifying income and expenses can distort your financial records and lead to errors in your BAS. For example, treating a private expense as a business expense or incorrectly categorizing capital purchases.

How We Help: With our expertise in Xero and other accounting software, we ensure every transaction is correctly categorized to reflect accurate data in your BAS.

4. Overclaiming or Underclaiming GST Credits

Overclaiming GST credits for expenses that aren’t fully deductible or missing eligible claims can negatively impact your cash flow and lead to ATO scrutiny.

How We Help: We audit your expense claims and ensure that you claim only what you’re entitled to, maximizing your deductions while staying compliant.

5. Forgetting to Report PAYG Withholding

If you have employees, you’re required to report PAYG withholding in your BAS. Forgetting this component can lead to discrepancies in your ATO records.

How We Help: We include PAYG withholding as part of our comprehensive BAS service, ensuring all obligations are met.

6. Not Using a Qualified Bookkeeper for Regular Reconciliation

Many business owners think they can handle bank reconciliations and file checks themselves, but this often leads to errors or tasks being neglected entirely. Over time, this creates a backlog, which costs significantly more to fix at the end of the financial year. By investing in a qualified bookkeeper, you not only avoid these costly mistakes but also save money in the long run. An experienced professional knows how to claim all legitimate expenses, which can provide additional financial benefits.

How We Help: We handle your regular reconciliations and ensure your books are always up to date, giving you peace of mind and saving you money.

7. DIY Tax Mistakes

Some business owners try to handle their BAS and taxes on their own, thinking it saves money. However, errors in calculations, missing deductions, or incorrect filings can end up costing more in penalties and lost opportunities.

How We Help: With our expertise, we ensure accuracy, compliance, and that you claim every benefit you’re entitled to.

8. Not Reconciling Your Accounts Regularly

Unreconciled accounts can result in discrepancies between your BAS and financial records, leading to errors and potential ATO audits.

How We Help: Our monthly reconciliation services keep your accounts accurate and up to date, ensuring seamless BAS lodgment.

9. Manual Errors in BAS Preparation

Businesses that prepare their BAS manually are more prone to calculation errors, missed fields, or incorrect data entries.

How We Help: We leverage technology and our expertise to automate and review the BAS preparation process, eliminating manual mistakes.

Why Choose TR Accounting Services for BAS Assistance?

At TR Accounting Services, we specialize in simplifying BAS for businesses in Karratha and beyond. Here’s why clients trust us:

• Expert Knowledge: As a registered BAS Agent, I’m up to date with the latest ATO regulations and guidelines for 2025.

• Tailored Support: We offer customized services based on your business needs, from quarterly BAS checks to full-service bookkeeping.

• Friendly Service: Our approachable and professional team is here to guide you every step of the way.

Let’s Simplify BAS in 2025 Together

Avoiding common BAS errors can save you time, money, and unnecessary stress. Whether you need help with GST reporting, transaction classification, or meeting deadlines, TR Accounting Services is here to support your business.

Contact us today to ensure your BAS lodgments are error-free and on time. Let’s work together to keep your business compliant and thriving in 2025!