The BAS Mistakes That Attract ATO Attention

Posted on by Heathcote Boarding Kennels

Why BAS Errors Are Costing Small Businesses More Than Ever

For many small business owners, lodging a Business Activity Statement (BAS) feels like a routine administrative task.

But what appears to be a minor coding error today can become a costly compliance issue tomorrow.

The Australian Taxation Office (ATO) has identified over-claiming expenses and GST credits as one of its current small-business focus areas. The ATO is also increasingly using data matching and technology to identify inconsistencies in business reporting. [ato.gov.au], [ato.gov.au]

The good news? Most BAS problems are preventable.

Let’s look at some of the most common mistakes and how to avoid them.

The ATO Is Looking Closely at GST Claims

The ATO’s current small-business focus areas specifically include:

  • Over-claiming GST credits
  • Incorrect deductions
  • Omitted income
  • Using business funds for personal purposes
  • Poor record-keeping practices

These are not isolated audit targets. They are areas where the ATO sees recurring errors across thousands of businesses. [ato.gov.au]

In many cases, the issue isn’t fraud.

It’s simply a business making the same bookkeeping mistake over and over.

Mistake 1: Claiming GST Without a Valid Tax Invoice

One of the most common BAS errors is claiming GST credits where the business cannot produce a compliant tax invoice.

Examples include:

  • Lost receipts
  • Screenshots that don’t meet invoice requirements
  • Supplier documentation that doesn’t show GST
  • Bank transactions without supporting paperwork

Why it matters

If the ATO reviews a claim and supporting documentation isn’t available, the GST credit may be denied.

Spring Clean Tip

Review large purchases from the past 12 months and ensure supporting invoices are stored digitally and are easy to locate.

Mistake 2: Mixing Personal and Business Expenses

The ATO identifies the use of business money and assets for personal benefit as a focus area for small businesses. [ato.gov.au]

Examples include:

  • Family holidays partially claimed as business travel
  • Personal subscriptions paid through the business
  • Private motor vehicle expenses
  • Personal shopping charged to company accounts

Why it matters

The issue is often not the transaction itself.

The issue is failing to properly separate and document the business component from the personal component.

Practical Question

Can you clearly explain the business purpose behind every significant expense?

If not, it may be worth reviewing your coding and supporting documentation.

Mistake 3: Incorrect GST Coding

Many GST errors begin inside bookkeeping software.

Examples include:

  • Coding GST-free purchases incorrectly
  • Claiming GST on expenses that do not include GST
  • Incorrect treatment of mixed supplies
  • Claiming GST on private expenses
  • Recording transactions in the wrong GST category

Why it matters

A single coding error may seem insignificant.

A repeated coding error across hundreds of transactions can create a substantial BAS adjustment.

Mistake 4: Not Reporting All Income

The ATO continues to focus on omitted income and increasingly matches information from multiple third-party sources. [ato.gov.au], [ato.gov.au]

Data can be received from:

  • Banks
  • Employers
  • Government agencies
  • Businesses
  • Financial institutions
  • Taxable Payments Annual Reports (TPAR)

The ATO states that it uses this information to identify errors and non-compliance. [ato.gov.au]

Common Examples

  • Cash sales not recorded
  • Online sales omitted
  • Contractor income overlooked
  • Deposits incorrectly treated as non-income

Important Point

What may feel like a small oversight can become highly visible when compared against external data sources.

Mistake 5: Poor Record Keeping

Many businesses don’t discover a record-keeping issue until they’re asked for documentation.

Common examples include:

  • Missing receipts
  • No motor vehicle logbook
  • Missing supplier invoices
  • Poor storage of digital records
  • Unorganised document management systems

Why it matters

Good records make BAS reviews easier, improve bookkeeping accuracy, and significantly reduce stress if questions arise later.

Five BAS Health Check Questions

Before your next BAS lodgement, ask yourself:

✅ Do I have supporting documentation for significant GST claims?

✅ Are personal and business expenses clearly separated?

✅ Have I reviewed GST coding for accuracy?

✅ Am I confident all business income has been recorded?

✅ Can I quickly locate supporting records if requested?

If any answer is “not sure”, it’s worth addressing before lodging.

Conclusion

Most BAS errors aren’t caused by dishonesty.

They’re caused by stretched business owners, inconsistent bookkeeping processes, and systems that haven’t been reviewed for years.

The ATO’s focus on GST credits, omitted income, and personal use of business funds highlights the importance of maintaining accurate records and reviewing your bookkeeping regularly. [ato.gov.au], [ato.gov.au]

A BAS should be more than a compliance obligation.

It should be a regular opportunity to confirm that your business records are accurate, complete, and telling the right story.

Need a BAS Health Check?

If you’re unsure whether your GST coding, record-keeping, or business expense claims are correct, now is an ideal time for a review. A small adjustment today can prevent a much larger problem later.

The Hidden Costs of Poor Payroll Systems

Posted on by customisedaccounting.com.au

Payroll mistakes can be frustrating, and expensive. Across Australia, organisations of every size are being forced to repay millions in underpayments due to outdated systems, incorrect award interpretation, and poor record‑keeping. Recent Fair Work undertakings show just how quickly payroll errors escalate.

This month, we’re unpacking the hidden costs of poor payroll systems and how modern tools (combined with expert setup) can protect your business.

Why payroll systems fail

Small businesses don’t choose a bad payroll system on purpose. More often, they simply outgrow the tools they started with or inherited.

Common failure points include:

  • Manual spreadsheets with fragile formulas
  • Legacy software not updated for STP Phase 2
  • Incorrect award interpretation baked into old templates
  • No audit trail or version control
  • Disconnected time‑and‑attendance processes

When these weaknesses compound, errors become inevitable — and costly.

The financial costs owners don’t see

Payroll errors can accumulate quietly. A small mistake repeated over months becomes a significant liability.

Examples include:

  • Backpay liabilities from incorrect penalty rates or allowances
  • Superannuation shortfalls attracting interest and admin penalties
  • Incorrect PAYG withholding leading to BAS amendments
  • Overpayments caused by duplicated entries or formula errors

A simple underpayment of $40 per week becomes $2,080 per employee per year.

Real‑world examples from recent news

These cases highlight how payroll errors escalate into multi‑million‑dollar problems:

These examples show that payroll errors are rarely small — and they compound over time.

Compliance risks that escalate quickly

Fair Work and the ATO are increasingly focused on payroll accuracy and record‑keeping. Poor systems make compliance harder, not easier.

Key risks include:

  • Incorrect award classification
  • Wrong STP Phase 2 reporting categories
  • Missing or incomplete time‑and‑attendance records
  • No evidence trail for payroll decisions
  • Inability to respond to audit requests within required timeframes

Recent enforcement actions

Even minor issues can trigger backpay reviews, penalties, or reputational damage.

Operational inefficiencies that drain time

Beyond compliance, poor payroll systems waste hours every week.

Typical inefficiencies include:

  • Re‑keying data between payroll, accounting, and HR
  • Manually uploading super contributions
  • Chasing missing timesheets
  • Fixing errors after pay day
  • Re‑running payroll due to incorrect settings

Two hours lost each week becomes 100+ hours per year — time that could be spent on customers, strategy, or growth.

The human impact: staff trust and retention

Payroll accuracy is one of the most important trust signals in any workplace. When pay is wrong, late, or unclear, staff confidence erodes quickly.

Common impacts include:

  • Confusion about leave balances
  • Anxiety when super doesn’t appear
  • Frustration over repeated payroll errors
  • Reduced trust in management
  • Higher turnover risk

Payroll is more than numbers — it’s a core part of employee wellbeing.

What modern payroll systems do differently

Modern payroll platforms reduce risk by automating compliance and improving accuracy.

Key features include:

  • Automated award interpretation
  • Integrated time‑and‑attendance
  • Real‑time STP Phase 2 validation
  • Built‑in audit trails
  • Employee self‑service portals
  • Automated super clearing
  • Cloud‑based updates to keep pace with legislation

These tools don’t replace expertise — they amplify it.

How I help small businesses modernise payroll

Upgrading payroll doesn’t need to be overwhelming. I support businesses through:

  • Payroll system selection
  • Award setup and verification
  • Payroll health checks
  • STP Phase 2 configuration
  • Ongoing compliance support

This ensures your payroll is accurate, compliant, and efficient — every pay cycle.

Conclusion

Poor payroll systems cost far more than most owners realise. The financial, compliance, operational, and human impacts add up quickly — but they’re avoidable. With the right tools and expert guidance, payroll becomes a source of confidence rather than risk.

If your payroll system feels clunky, outdated, or error‑prone, now is the perfect time for a health check.

When You’re Busy Running Your Business, Who’s Running Your Books?

Posted on by customisedaccounting.com.au

The Reality: You’re Flat Out

Most business owners aren’t ignoring their admin — they’re just busy keeping the wheels turning. Serving clients, managing staff, delivering work, solving problems. When you’re stuck in the daily doing, bookkeeping becomes the task you’ll “get to later”… and later never arrives.

The Backlog Builds Fast

A few unreconciled transactions.
A missed invoice.
A payroll tweak you meant to fix.
A BAS that’s technically lodged… but not exactly accurate.

Individually small. Collectively messy.

And suddenly your financial picture isn’t a picture — it’s a blur.

This Is Where CAM Steps In

Customised Accounting Matters keeps your financial world moving even when you’re too busy to look at it.

We:

  • Clean up what’s been pushed aside
  • Catch what’s been missed
  • Keep your books current
  • Give you clarity without the stress
  • Make sure your numbers tell the truth

You run the business.
We run the books.

The CAM Difference

Not just bookkeeping — partnership.
Structure, accountability, customised systems, and reporting you’ll actually understand. A calm, organised financial presence in the background while you get on with the doing.

Ready to Get Out of the Admin Backlog

If your bookkeeping has taken a back seat (or been shoved into the boot), CAM can bring it back under control — quickly, cleanly, and without adding to your workload.

Let CAM handle the numbers so you can handle the business.

Why Outsourcing Your Bookkeeping Is One of the Smartest Moves a Small Business Can Make

Posted on by customisedaccounting.com.au

Running a small business means juggling sales, customers, staff, admin, and everything in between. But there’s one area where trying to “do it all” can quietly cost you time, money, and compliance — your bookkeeping.

Outsourcing your bookkeeping isn’t just about convenience. It’s about accuracy, compliance, and having the right financial information to make confident decisions. And in Australia, it’s also about ensuring your bookkeeper is legally allowed to provide the services you’re paying for.

What Outsourced Bookkeeping Actually Involves

A professional outsourced bookkeeper typically handles:

  • Daily transaction recording
  • Bank reconciliations
  • Payroll processing
  • BAS preparation and lodgement
  • Financial reporting

For many small businesses, this replaces 5–10 hours of admin every week — time that can be redirected into growth, customers, and strategy.

The Critical Legal Requirement: Your Bookkeeper MUST Be Registered With the Tax Practitioners Board

This is the part most small‑business owners don’t realise.

In Australia, anyone providing BAS services must be a registered BAS agent or tax agent with the Tax Practitioners Board (TPB). This includes tasks such as:

  • Coding GST
  • Preparing or lodging BAS
  • Providing GST advice
  • Handling payroll where it affects BAS
  • Reviewing or adjusting business accounts for BAS purposes

Using an unregistered bookkeeper for these services is not only risky — it’s illegal.

Why TPB registration matters

A registered BAS agent must:

  • Meet strict education and experience requirements
  • Hold professional indemnity insurance
  • Follow a legally enforceable Code of Professional Conduct
  • Maintain ongoing professional development
  • Be accountable to the TPB for their work

This protects your business from:

  • Incorrect BAS lodgements
  • GST miscalculations
  • ATO penalties
  • Poor‑quality or unqualified advice

If a bookkeeper isn’t registered, they cannot legally offer BAS services — no matter how experienced they claim to be.

The Benefits of Outsourcing Bookkeeping

1. More Time to Run Your Business

Bookkeeping is time‑consuming. Outsourcing frees you from:

  • Data entry
  • Chasing receipts
  • Reconciling accounts
  • Payroll admin

That’s hours back every week.

2. Better Accuracy and Fewer Mistakes

Professional bookkeepers understand:

  • ATO rules
  • GST requirements
  • Payroll compliance
  • Common small‑business pitfalls

This reduces errors that can snowball into costly problems.

3. Lower Costs Compared to Hiring Staff

Hiring an employee means paying:

  • Salary
  • Super
  • WorkCover
  • Training
  • Software licences

Outsourcing is typically 30–50% cheaper, with no overheads.

4. Real‑Time Financial Visibility

Cloud accounting tools like Xero and MYOB give you:

  • Live dashboards
  • Cash‑flow insights
  • Monthly reports
  • Alerts for issues

You get clarity instead of guesswork.

5. Less EOFY Stress

When your books are clean all year, EOFY becomes:

  • Faster
  • Cheaper
  • Far less stressful

Your accountant can lodge quickly because everything is already organised.

How to Know It’s Time to Outsource

You’re ready to outsource if:

  • You’re behind on BAS or super
  • You avoid opening your accounting software
  • You’re unsure whether you’re profitable
  • Your accountant keeps asking for missing documents
  • You’re spending nights or weekends “catching up”

These are signs your bookkeeping is holding your business back.

What to Look for in a Bookkeeper

A trustworthy bookkeeper should have:

  • TPB registration Home | Tax Practitioners Board
  • Experience in your industry
  • Transparent pricing
  • Cloud accounting expertise
  • Clear communication habits

If they can’t provide their BAS agent number, that’s your cue to walk away.

The Bottom Line

Outsourcing your bookkeeping isn’t just a time‑saver — it’s a strategic move that protects your business, improves accuracy, and gives you the financial clarity you need to grow.

And above all, choosing a TPB‑registered BAS agent ensures you’re working with someone who is qualified, insured, accountable, and legally authorised to support your business.

Turning the Winter Slowdown Into Your Most Productive Season

Posted on by customisedaccounting.com.au

For many Australian small businesses — especially in regional areas — winter brings a familiar pattern. Foot traffic softens, customers stay home more, and spending slows as households and businesses alike tighten their budgets before EOFY. It’s not a crisis. It’s a rhythm. And when you understand it, winter becomes one of the most valuable planning windows of the year.

In this post, we’ll look at why the slowdown happens, which industries feel it most, and how to use the quieter months to strengthen your systems, tidy up compliance, and set yourself up for a smoother new financial year.

Why Winter Feels Different for Small Business

From May to July, several seasonal factors converge:

People go out less

Shorter days and colder weather naturally reduce foot traffic. Fewer errands, fewer drop‑ins, fewer spontaneous purchases.

Discretionary spending dips

After summer holidays and before EOFY, households often pause non‑essential spending until they understand their tax position.

Tourism slows

Regional operators feel this most. Visitor numbers drop, events quieten down, and accommodation bookings soften.

Staffing patterns shift

University students return to study, casuals reduce availability, and businesses often cut hours to match demand.

This isn’t a downturn — it’s a seasonal reset.

Industries Most Affected

Winter tends to hit some sectors harder than others:

  • Hospitality – cafés, bakeries, and tourism‑adjacent venues
  • Retail – especially non‑essential goods
  • Tourism & accommodation
  • Personal services – beauty, wellness, fitness

Meanwhile, other sectors remain steady or even get busier:

  • Trades
  • Professional services
  • Agriculture
  • Health & community services

Understanding where your business sits will help you plan your winter strategy.

Why Winter Is the Best Time for Business Housekeeping

A quieter period is the perfect opportunity to work on the business rather than in it. Winter gives you the breathing room to tackle the tasks that always get pushed aside during busy periods.

Here are the areas where winter work pays off the most:

1. Payroll & Compliance Clean‑Ups

  • Check award classifications and pay rates
  • Review leave balances and accrual accuracy
  • Fix STP errors before EOFY
  • Audit superannuation payments
  • Prepare for 1 July wage and SG changes

These small checks prevent big headaches later.

2. Process & System Improvements

  • Update onboarding packs and SOPs
  • Refresh templates (contracts, policies, forms)
  • Review access permissions and user roles
  • Clean up your accounting file (contacts, chart of accounts, bank rules)

Winter is the ideal time to tighten the nuts and bolts.

3. Cybersecurity Tune‑Ups

  • Enable MFA across all business tools
  • Review who has access to what
  • Move toward passwordless login options
  • Update old devices and software

Cyber risk spikes during EOFY — prevention is cheaper than recovery.

4. Cash‑Flow Planning for the New Financial Year

  • Review pricing
  • Map out major expenses
  • Forecast July–December cash flow
  • Identify slow‑paying customers and tidy up debtors

A small amount of planning now creates a smoother second half of the year.

A Practical Next Step for Your Business

If winter is already feeling quieter for your business, this is the perfect moment to step back and make sure your systems, payroll, and compliance processes are working the way they should. A small amount of housekeeping now can save a lot of stress when July arrives.

If you’d like a second set of eyes on your payroll, super, or day‑to‑day workflows, you’re welcome to reach out. I can walk you through a practical review, highlight any gaps, and help you put simple, reliable processes in place so you head into the new financial year with confidence.

Payday Super is getting closer — a quick reminder for small businesses

Posted on by customisedaccounting.com.au

Last year I wrote about the closure of the ATO’s Small Business Superannuation Clearing House (SBSCH) and the introduction of Payday Super. As a reminder, these changes are still coming — and the timeline is tightening.

From 1 July 2026:

  • The SBSCH will no longer be available
  • Employers will need to pay super at the same time as wages, not quarterly
  • Super must reach employees’ funds within 7 business days of payday

This isn’t just an administrative change. It fundamentally shifts super from a quarterly task to a pay‑cycle obligation, increasing both the frequency and compliance risk for businesses.

Why this matters now

Many businesses will move from:

  • 4 super deadlines a year

to

  • 12–52 deadlines a year (depending on pay frequency)

That leaves much less room for error. Late or incorrect payments will be visible to the ATO far more quickly through Single Touch Payroll (STP).

Technology is key

Manual processes that worked under the quarterly system won’t scale under Payday Super. Well‑configured payroll software helps by:

  • Calculating super correctly every pay run
  • Reporting accurately through STP
  • Automating super payments and reducing missed deadlines
  • Creating a clear audit trail if the ATO asks questions

What businesses should be doing

Now is the right time to:

  • Review your payroll and super payment process
  • Confirm your STP setup is correct
  • Plan for more frequent super cash outflows
  • Identify an alternative to the SBSCH if you currently rely on it

Many businesses are choosing to move to super‑on‑payday early to reduce risk and avoid a last‑minute scramble.

👉 Need help?

If you’d like support reviewing your payroll setup or planning for Payday Super, contact Cameron at

📧 cameron@customisedaccounting.com.au

SBSCH Is Closing — Is Your Business Ready for Payday Super?

Posted on by Heathcote Boarding Kennels

🚨 SBSCH Is Closing — Is Your Business Ready for Payday Super?

The ATO’s Small Business Superannuation Clearing House (SBSCH) is shutting down by 1 July 2026, and with it comes a major shift: Payday Super will require employers to pay super at the same time as wages.

If you’re a small business owner, this change means more than just ticking a new box — it’s a fundamental shift in how you manage payroll, cash flow, and compliance.

🔍 Key Dates:

  • 1 Oct 2025: SBSCH closes to new registrations
  • 30 June 2026: Final day of SBSCH operations
  • 1 July 2026: Payday Super begins — super must be paid with wages

💼 What You Need to Do:

  • Review your payroll software (Xero, MYOB, QuickBooks)
  • Explore commercial clearing houses or super fund services
  • Plan for real-time super payments to avoid penalties

👋 Need help navigating the transition?

As a Registered BAS Agent and Bookkeeper, I help small businesses stay compliant and confident through change. At Customised Accounting Matters, we offer tailored support to future-proof your payroll and super processes.

📧 Reach out: cameron@customisedaccounting.com.au