This episode is about an unknown for many small business owners – what do you do when you’ve made a mistake on your BAS (Business Activity Statement)?
This episode is super short and snackable because it’s a very quick and straightforward ‘what to do’. Even though it sounds like it might be a sticky situation to navigate it’s very straightforward and simple. There is absolutely no need to stress out.
There are a million different reasons you may have made a mistake but fear not. I provide some examples of what constitutes a small (immaterial) mistake, with some examples and the practical steps you need to take to reverse the incorrect entry.
I also explain how simple it is, if you’re using the new BAS experience in Xero.
I also explain what to do if it’s a big (material) mistake. Don’t worry – there is no drama if it’s a recent and honest mistake. I explain what to do in this situation and give you an example of how to revise a mistake like this through the ATO portal. All mistakes need to be revised in 12 months to four years depending on different time limits, scenarios and turnover thresholds.
I summarise by providing a list of questions you need to consider:
Is the amount material?
Is the amount recent?
What financial year is it in?
Can I include it in the next BAS or am I required to lodge a revision?
Finally, don’t hesitate to ask your friendly bookkeeper, BAS agent or tax agent for help. Asking for help is how we learn and grow.
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