IntermediateBEHAVIORAL
Tell me about a time when you identified and corrected an error in a client's BAS or GST reporting before lodgement — what steps did you take and what was the outcome for the client and compliance with the ATO?
australian bookkeeper
General

Sample Answer

A client came to me two days before BAS lodgement saying their GST payable looked unusually low. I reviewed their Xero cashbook and reconciliations and found $48,500 of sales coded to a GST-free income account by mistake. I ran a detailed report, corrected the coding to standard-rated sales, adjusted the BAS worksheet and re-ran the GST liability which increased by $7,435. I called the client, explained the correction and lodged the amended BAS within the original deadline, avoiding any penalties. The client appreciated the quick fix — we saved an estimated $1,200 in potential interest/penalties and restored accurate monthly cashflow projections that had been off by 8%.

Keywords

Identified miscoding in accounting system (Xero) affecting GSTQuick corrective steps: reporting, recoding, recalculating BAS and lodgementOutcome: corrected GST $7,435, avoided penalties (~$1,200) and improved cashflow accuracy