When you hire a BAS accountant, you expect more than just data entry and GST lodgement. A good BAS accountant isn't just ticking boxes—they're your first line of defense against costly errors, penalties, and compliance issues. But what if they're missing signs that could impact your business?
Here are the top red flags your BAS accountant should be warning you about — and if they're not, it may be time to reconsider your options.
1. Inconsistent GST Reporting
If your reported GST doesn't match your actual business activity, it's a problem. Whether it's underreporting sales or claiming too much input tax credit, ATO flags inconsistencies fast.
Your BAS accountant should alert you if:
- The GST collected doesn't align with your income statements.
- You're consistently reporting refunds without valid credits.
- There's a mismatch between GST on invoices and what's being lodged.
Why it matters: This is one of the most common triggers for ATO audits.
2. Mixing Personal and Business Expenses
Using a business account to pay for personal items? It might feel harmless, but it can blur lines and lead to incorrect GST claims or deductible errors.
Your BAS accountant should warn you if:
- You're frequently claiming GST on non-business-related expenses.
- Your bookkeeping lacks a clear separation between personal and business spending.
Fix it fast: A best accountant Perth will recommend tracking tools or even restructuring accounts.
3. Late or Repeated BAS Lodgements
One missed BAS deadline might slide. But do it repeatedly, and you'll face penalties, interest charges, and increased ATO scrutiny.
Your BAS accountant should:
- Send reminders well in advance of BAS due dates.
- Warn you about escalating penalties if you're consistently late.
- Lodge on your behalf before deadlines.
Red flag if: They don't even follow up until the ATO sends a notice.
4. Unusual Spikes or Dips in Reported Income
ATO systems flag unusual changes in income or GST patterns, especially without explanation.
Your BAS accountant should:
- Spot unexpected income trends and review the source.
- Help you explain sudden business drops or gains to the ATO if needed.
- Adjust PAYG installments if applicable.
Missed red flags = audits.
5. Frequent Adjustments and Amendments
If your accountant is constantly amending previous BAS statements, this could signal:
- Poor record-keeping
- Over-reliance on estimates
- Missed reconciliation steps
A good BAS accountant:
- Ensures data is accurate before lodging.
- Doesn't rely on frequent “fixes” as standard practice.
6. Not Reconciling With Bank Accounts
Bank reconciliation isn't optional—it's critical. Your BAS accountant must ensure that all data matches your bank statements.
Red flags include:
- Missing transactions
- Duplicate entries
- Incorrect opening/closing balances
This directly affects your GST figures and can lead to incorrect reporting.
7. Claiming GST on Non-Compliant Invoices
ATO requires tax invoices to include specific fields for GST claims. If you're claiming GST from suppliers who don't issue compliant invoices, it's risky.
Your accountant should:
- Check for proper tax invoice formatting.
- Warn you about claiming GST without valid support.
- Educate you on how to request correct invoices from suppliers.
8. Lack of Communication or One-Way Reporting
If your BAS accountant is only submitting data without explaining things, it's a huge red flag. They should be guiding you, not just processing paperwork.
You deserve:
- Regular updates
- Clear explanations
- Alerts on compliance issues
Silence isn't a good sign.
9. No Review of Payroll and Super Obligations
Your BAS includes PAYG withholding and super obligations if you employ staff. Ignoring this or filing it incorrectly can lead to serious penalties.
Your BAS accountant must:
- Reconcile payroll data
- Alert you if the super is underpaid or overdue
- Ensure PAYG amounts match what's withheld
10. They're Not Registered with the TPB
Only registered BAS agents or tax agents can legally provide BAS services in Australia. If your accountant isn't registered, they shouldn't be handling BAS lodgements.
Final Thoughts
Your BAS accountant should be your compliance partner, not just a form filler. If they aren't warning you about these red flags, they might be putting your business at risk, whether through oversight, lack of experience, or simply not caring.