Before the BAS goes out: reconcile the story behind the labels

A BAS figure is easier to review when the number, its underlying transactions and the reason for any difference are visible together. A useful preparation sequence is to confirm the period, inspect the labels, trace material amounts to source entries, compare GST totals with the ledger, and leave a clear record of unresolved items.

This is a practical workflow for Australian accounting teams. It is general information, not tax advice. Check current ATO guidance and the client’s circumstances before preparing or reviewing a statement.

1. Set the period and scope

Start by confirming which reporting period the work covers and which entity’s records are in scope. Check that the accounting data and the BAS figures being reviewed refer to that same period. Keep this scope visible in the working paper or review notes so a later reviewer can tell what was included.

Before looking at totals, identify the source records available for the period: the ledger, relevant sales and purchase transactions, payroll journals where applicable, and the BAS figures being checked. Note any missing, late or corrected records as follow-up items rather than silently treating the available data as complete.

2. Review the labels before reviewing the total

Read the BAS labels individually. A total can appear plausible while one component is missing, duplicated or mapped to the wrong category. Compare the reported labels to the accounting records and ask what activity each amount represents.

For sales, check that the transactions included in the period are represented consistently in the label calculation. Look for credits, reversals, adjustments and transactions recorded near the period boundary. For purchases and GST credits, review the entries contributing to the reported amount and follow your normal source-document and eligibility checks. A ledger entry alone does not establish that a claim is correct.

Where wages and withholding are reported, trace those amounts back to payroll records and the related ledger postings. Investigate differences in timing, corrections or journals, and make sure the review notes explain the treatment used.

In MyLedger, the BAS summary presents period labels such as G1, 1A, 1B, W1 and W2, with drill-down to the transactions behind each figure. That lets a reviewer move from a label to its contributing entries as part of the check. [ev:feature:acb-bas-summary]

W1 and W2 in MyLedger come from the client’s payroll journals rather than being retyped into the BAS summary. Review the journals and the resulting values for the period, and follow up any gap between payroll records and the ledger. [ev:feature:acb-bas-payg-ledger]

3. Reconcile GST and investigate differences

Compare the GST represented in the ledger with the BAS figures for the same period. When the amounts differ, break the variance into understandable items. Common review prompts include checking transaction dates, tax codes, manual journals, credits, and entries that may have been posted to a different period. These are prompts for investigation, not assumptions about what caused a particular difference.

For each difference, record the amount, the accounts or transactions involved, the explanation supported by the records, and whether a correction or further review is needed. Keep unresolved questions open and assign a next step. Do not plug a variance with an unsupported adjustment just to make the totals agree.

MyLedger’s GST reconciliation compares ledger GST with BAS figures, supports review of differences and keeps a history of each reconciliation. This provides a place to revisit how the reconciliation changed across review steps. [ev:feature:acb-gst-reconciliation]

If a calculation needs to be set out separately, MyLedger includes a GST calculation worksheet with manual inputs that follows the ATO worksheet. Use it to make the calculation visible; validate inputs and treatment against current ATO material and the source records. [ev:feature:acb-bas-gst-worksheet]

4. Compare the account view with the ledger

A ledger-to-BAS check and an ATO-account-to-ledger check answer different questions. The first checks how the period figures were assembled. The second can help identify whether account activity recorded by the ATO is reflected in the client ledger. Keep those checks distinct and reconcile any mismatch using the relevant source records.

MyLedger’s ATO comparison panel compares ATO account activity with the ledger and prompts the user to import anything missing. Treat an import prompt as a review cue: inspect the item and confirm it belongs to the entity and period before updating records. [ev:feature:acb-ato-recon-panel]

4a. Use exceptions to focus the second pass

A first pass tells you where the totals sit; an exceptions pass helps direct attention to items that deserve a closer look. Sort or group the records using the tools available in the source report, then examine unusual movements, entries with missing support, and items whose coding differs from the pattern you expected. A difference is a question to resolve, not proof of an error.

For each exception, follow a small chain of evidence: identify the transaction or group, inspect its source record, check the period and tax treatment recorded, then compare the result with the relevant BAS label. If the source and ledger disagree, document both and route the issue for review. If a correction is needed, preserve the practice's ordinary authorisation and audit process. Do not turn a diagnostic prompt into an automatic adjustment.

Where a transaction spans periods or has been amended, make the timing explanation explicit. Note which period contains the original entry, whether a later credit or reversal exists, and how that affects the current reconciliation. This helps the next reviewer distinguish a timing item from a classification or recording issue without relying on memory.

4b. Make the hand-off useful

A clear hand-off should let the reviewer decide what to inspect next. Instead of writing “GST variance checked”, record the accounts or label involved, what source was compared, the explanation found, and the unresolved question if the explanation is incomplete. Link or identify supporting records through your practice's approved file process, while avoiding unnecessary personal or client details in general notes.

If the issue concerns payroll, keep the payroll source and ledger posting in view together. If it concerns sales or purchases, identify the affected transaction set and the source documents reviewed. If it relates to ATO account activity, keep that comparison distinct from the BAS-period calculation so the reviewer can see which question each check answered.

These notes also make repeated review more consistent. A colleague can see whether the same exception was previously examined, whether the underlying evidence has changed, and whether the item still needs attention. The goal is a transparent trail of checks and decisions, not a tidy-looking total at any cost.

5. Close the review with a readable trail

A useful review record answers four questions: what was compared, what differed, how each difference was resolved or escalated, and what remains open. Include enough context for another accountant to reproduce the check without relying on an undocumented conversation.

A compact close-out can include:

• the entity and period reviewed;
• the BAS labels checked and the source reports used;
• reconciliation differences and the evidence supporting each explanation;
• corrections made, with the relevant source and approval trail under your practice process; and
• unresolved items, their owner and the next review step.

Keep the final review separate from preparation where your practice process requires it. Confirm that unresolved matters are visible to the reviewer and that any changes made during review are reflected in the reconciliation record.

A repeatable sequence

The workflow is simple to state: confirm scope, review labels, trace entries, reconcile GST, compare relevant account activity, and document the outcome. The value comes from doing each step against the same period and preserving the explanation when figures do not line up.

MyLedger’s working papers overview is at https://home.fedix.ai/features/ai-working-papers.

Last reviewed: 22 October 2026. Verify current ATO requirements and product details before relying on this article.

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