Preparing your BAS with Budgets Get Real
Preparing Business Activity Statements is simple. When it comes time to prepare your BAS report simply work though the following checklist:
Activity statement information
The ATO allows you to report your tax obligations in a number of different options. Budgets GetReal allows you to comply with these options in preparing your Business Activity Statements as follows.
GST Accounting on a Cash basis
Budgets GetReal takes its transaction data from imported statements. Version 1.01 currently provides no facilities for tracking creditors, debtors or stock. Accordingly you are restricted to using a cash basis of accounting for GST. This is the simplest method.
GST Calculation Worksheet Method
BGR simplifies the preparation of GST using the calculation worksheet method. You simply run the reports and transfer the totals to the relevant boxes on the BAS form.
GST reporting frequency and options
Budgets GetReal does not seek to control these. Simply run the reports as required for the options you have chosen. Check the results and simply add to the Business Activity Statement for submission to the ATO.
Budgets GetReal complies with ATO standards
Budgets GetReal has been tested against, and complies fully, with the ATO Test Scenarios for the Calculation Worksheet method.
Step 1: Ensure all your accounts are entered and categorised
Ensure that all statements are imported and categorised for the period covered by the BAS return.
Ensure that any anomalies marked for attention while importing statements are rectified. Specifically:
Transactions categorised to Suspense category
This is best done at the Transactions > Search screen and not within Business Pack Reports. You need to edit transactions found by Search. Select search “One Category” and select your Suspense category.
Transactions allocated with Query tax code
Use the Transactions > Search screen. Select search “One Code related” and select your Query Tax code eg QUE.
Uncategorised transactions
Use the Transactions > Search screen. Select search “Uncategorised only”. All uncategorised transactions in all accounts will present.
Step 2: Ensure that all groupings required for BAS are correct.
You may have added additional codes or not setup your Custom Groupings. These should be checked before running the reports.
While BAS Reports (Step 4) incorporates a number of checks to detect if these are not correctly setup it’s always wise to review these each time.
Step 3: Run the Grouped Exception report
Select “Grouped Exception Report” as the Report Type. Select the Accounts to check and enter the date range you will be using for your Business Activity Statement.
This report list all transactions components (originating from the nominated accounts) that do not have a Business code associated with them.
You would normally select all your business accounts for checking since these should normally have a a business code on all transactions. Transactions without a code may result in under-paid or under-claimed tax.
Step 4: Run the BAS reports
You will select either “BAS Reports” or “BAS Reports + Unlinked” as the Report Type.
Select all the Groupings to be used in the Reports. Only groups defined at the Groupings tab will be used - not groups defined on code types. Enter the date range you will be using for your Business Activity Statement.
We suggest you use “BAS Reports + Unlinked”. This report exports ALL transactions with a business code for the specified date range. If you have used a code that is not specified in a grouping, or failed to select a required, a list of all unprocessed codes will be added in the report.
“BAS Reports” exports only those codes associated with the nominated groupings. If you miss a grouping then the report will not include these codes. Its provided for when you use business codes for sales and other dissections. Not that this report can be used for other than BAS.
For both reports it is not required that you specify the report fields or their order. You can of course fully specify the report. If you fail to specify one of the required fields they will be automatically added before your specified fields. See the Business Pack User Guide for further details of the report fields.
Step 5: Fill out your Business Activity Statement
Check the reports and transfer the amounts to your Calculation Worksheet and Business Activity Statement. Sign & submit the form and your done.
Your BAS Report will include totals for each Group selected + two tax columns (for tax paid and tax owing). These tax columns are not used with the Calculation Worksheet - their values should equal your calculated values in BAS Fields 1A & 1B.
Step 6: Record keeping
Let’s face it - with GST you can expect an ATO Audit at any time. The following simple record keeping tasks will make Audits as pain-free as possible when they do occur.
1. Keep a copy of your Calculation Worksheet.
2. Make a backup of your Budgets GetReal database. Copy this to CD and keep in a safe location - preferably a location away from your computer.
Your BGR database and all backups are encrypted and can only be read with the BGR application. To prevent these being opened in another copy of BGR simply add password protection ( Set & Maintain > Preferences).
3. Print and keep all the records listed in Steps 1, 3, 4 & 5 above. You may choose not to retain these reports if you have a backup of your database, at the time of your BAS, in a safe location.
4. File your printed bank statements for each reporting period. Your Budgets GetReal accounts are effectively audited against your bank. You can simply demonstrate that all amounts recorded are correct by printing a “Imported As Statement” account and simply checking this against your printed statements. The only issue in an audit is then to establish that your imports have been correctly categorised.
5. Use the Reminder section of BGR to note any issues that may be useful in an Audit. It’s easy to write the note when its clear in your mind.
6. File all tax invoices you sent and received for the reporting period. You must hold a valid tax invoice to claim any GST you’ve paid. Use the two reference fields in the Reminder section of BGR to record any invoice and purchase numbers. Even if you lose the invoice you may be able to get a copy from the supplier if you have the details.
