Reconcile your GST control account to lodged BAS amounts

If a GST liability looks too old or too large, start with its transaction history. You'll need a general ledger export, lodged BAS copies, the ATO account statement, bank payments and the previous reconciliation. A balance sheet gives the closing number; this schedule explains it.

Establish how your file records a BAS

Some files leave the GST liability in its control account until payment. Others transfer the lodged amount to an ATO clearing or integrated-client-account ledger. There may also be separate GST collected and GST paid accounts. Check the actual journals and linked accounts before choosing a reconciliation layout.

Lodging a BAS and posting a journal are separate actions. Don't assume your software has done both. MYOB's BAS workflow describes preparing and lodging the report, while its account reports reference describes GST-code reconciliation against linked account balances. Features and report names differ between MYOB products.

Follow one liability through the ledger

This fictional file transfers lodged GST into a separate ATO clearing account. Positive amounts mean a liability and negatives reduce it. There are no opening errors, cash-basis differences, penalties or other taxes in this first schedule.

Movement	GST liability change	Document
Opening balance on 1 July	+$2,000	Prior reconciliation: June GST not yet transferred
Transfer June GST to ATO clearing	-$2,000	Approved journal J-101 linked to June BAS
Current-period sales GST	+$6,000	GST transaction report
Current-period purchase credits	-$2,500	GST purchase detail
Closing balance on 30 September	$3,500	Current quarter’s GST still in control
Transfer September GST after review	-$3,500, leaving $0 for these items	Approved journal and lodged September BAS

In this method, bank payments reduce ATO clearing, not the GST control account again. Original ASBG worksheet; all example figures are fictional.

The September calculation is $6,000 - $2,500 = $3,500. The opening $2,000 moved to clearing; it did not disappear. Reconcile clearing separately: opening balance, transfers from each tax account, ATO charges or credits and bank settlements.

If your file uses direct payment from GST control, don't add the transfer journal from this example. Choose the method your accountant has approved and trace the actual entries.

Split the BAS payment into its obligations

A bank payment of $5,500 might settle $3,500 of GST and $2,000 of PAYG withholding. Coding all $5,500 against GST would reduce that account by $2,000 too much. Confirm the components on the lodged statement and ATO account; don't derive them from the payment description alone.

Likewise, a payment plan instalment might cover older debt. Match the ATO payment reference, amount and effective date to the relevant balance. The BAS overview explains why the statement can contain more than GST.

Explain the balance that legitimately remains

When GST is reported on cash but the ledger records invoices, unpaid customers and suppliers can explain differences between the control account and BAS. MYOB's purchases-report guidance identifies its Payables With Tax report as useful for this reconciliation. Use the corresponding receivables evidence as well. A balance of GST on unpaid invoices isn't automatically an overdue tax debt.

Create an ageing list with amount, source period, invoice or journal reference, explanation, owner and next action. Separate known timing items from unexplained opening balances and unsupported journals. Avoid a "rounding" or "prior year" adjustment simply because it makes the total agree.

Once an agent approves a correction, retain the original report, correcting entry and new reconciliation. That record should make sense to someone who didn't prepare it.

Continue with the next question

• Why BAS sales do not match your profit and loss report
• Unexpected BAS refund? Check the figures before lodging

Key takeaways

• Confirm the file's posting method before using a reconciliation template.
• Follow transfers through to the clearing account and actual payment.
• Identify every residual amount by period and source document.

Where to get help

Your registered agent can review GST timing and liability postings. Use the official MYOB references above for the product you have, and the Bookkeeping and BAS hub for the wider records routine.