Year end is a busy time for the bookkeepers, accountants and treasurers for churches. There are a lot of reports and a lot of detailed accounting work that must be completed.
Amongst all the reconciliations of assets and liabilities is the reconciliation of the GST.
Does the GST on the BAS equal the GST on the Balance Sheet?
If it doesn’t then it must be reconciled and report prepared to explain any variance.
Firstly, the treasurer needs to review this and then have the report ready for the auditor or assurance reviewer.
At Benkorp we have been preparing this form of reconciliation and report with clients since GST commenced in 2000.
We have also worked with many clients who prepare the reconciliation during the financial year at the end of every BAS period, to ensure that the GST is always correct. This is ideal.
Preparing the GST reconciliation regularly aims to avoid any surprises at year end and the possible pain of arduous searching for possible mistakes through a whole year of transactions.
Here is a guide on Steps to prepare a GST Reconciliation