Monthly GST reconciliation to catch errors before BAS lodgement.
GST reconciliation identifies discrepancies between what you've recorded and what the ATO expects before you lodge your BAS. We reconcile your GST ledger monthly, investigate timing differences, and flag adjustments needed so you never lodge a BAS with errors. This proactive approach prevents costly amendments and ATO inquiries.
GST reconciliation is the process of checking that the GST recorded in your accounts agrees with the underlying invoices, receipts and bank activity, so the figures reported on a Business Activity Statement are correct before it is lodged. It confirms input tax credits claimed and GST collected on sales are accurate and properly supported. It’s one function of BAS & Tax Compliance within your Finance Hub , part of a connected back office.
Common problems we solve
You're not sure if you can claim GST on certain expenses, and you don't want to claim incorrectly
You've realized after lodgement that you missed input tax credits and want to recover them
You use mixed-use assets or premises and aren't sure how to apportion GST correctly
The ATO has questioned your GST in prior years and you want to prevent it happening again
You're unsure how to treat GST on imports, inter-state supplies, or other complex transactions
Here's what you receive
Monthly GST Reconciliation Report
Detailed reconciliation of your GST ledger to source documents, with commentary explaining variances and adjustments. Delivered before BAS lodgement so you can verify accuracy.
Input Tax Credit Audit
We review all input tax claims, verify supporting documentation, and confirm entitlement. Recovers missed credits and prevents incorrect claims.
GST Adjustment Workpapers
Complete documentation of any GST adjustments needed, with supporting evidence. If the ATO questions your GST, you have the workpapers ready.
Bad Debt GST Recovery
Identification of eligible bad debts and processing of GST adjustment notes to recover input tax on amounts never collected.
Prior Period Review
If errors are identified in previous BAS periods, we calculate impact and determine best option: amendment, adjustment note, or voluntary disclosure.
How it works
GST reconciliation is the bridge between daily bookkeeping and quarterly BAS lodgement. While your accountant checks GST on tax return preparation, we catch errors in advance, when you can still lodge correctly without amendments. For service businesses, the biggest issue is often mixed-use expenses: the office internet bill is part personal/part business, the company car has private km, supplies are sometimes personal consumption. We systematically review your GST claims to ensure they're accurate and defensible. For retailers and manufacturers, GST recovery on stock purchases and production inputs is critical. We verify you're claiming all available input tax on purchases while rejecting personal expenses. If you're using apportionment for mixed-use input tax, we ensure it's calculated consistently. If you've made errors in prior years, we identify them and determine whether you can recover the GST or whether amendments are needed.
Monthly GST ledger reconciliation against source documents
Identification of timing differences before BAS lodgement
Documentation of GST adjustments with supporting evidence
Recovery of missed input tax credits
Prevention of BAS amendments and ATO corrections
Clear audit trail for all GST transactions
How gst reconciliation works
GST ledger extracted from your accounting system for the month
Transactions tested against source documents (invoices, receipts, credit notes)
Input tax credits verified and tracked against expense documents
GST on sales verified against customer invoices and payment records
Discrepancies investigated and adjusted before BAS lodgement
Monthly reconciliation summary provided with supporting workpapers
Who this service is ideal for
Service businesses with mixed-use expenses (home office, company vehicles) who want GST claims verified
Retailers and wholesalers who need systematic input tax credit tracking
Businesses that import goods and need guidance on GST treatment
Growing SMEs (especially $500k-$2M turnover) who want compliance certainty
Related services to explore
BAS Preparation
BAS preparation from fully reconciled, current financial data ensures every figure is verifiable, defensible, and audit-ready. We calculate GST, PAYG, and other obligations from your actual records, then provide the BAS ready for your review and lodgement.
IAS Preparation
For businesses with PAYG instalment obligations, we calculate the instalment amount based on your income, track payments, and handle amendments if your income changes. Instalments are calculated and lodged alongside your BAS.
Management Reporting
Management reporting goes beyond raw numbers. We provide comprehensive financial reports with expert commentary explaining what the numbers mean, highlighting trends, identifying anomalies, and surfacing opportunities for action.
Frequently asked questions
The short answers are here. For anything else, ask below or get in touch.
We reconcile every GST transaction in your ledger back to the original document. Common errors include claiming input tax on private expenses, incorrect tax period allocation, or missed GST on cash sales. We spot these before lodgement.
Ready to get started with gst reconciliation?
We can help you implement gst reconciliation and start seeing results. Talk to an advisor about your specific needs and how this service would fit your business.