Yayy!! You can now lodge your organisation BAS directly to ATO from your Xero organisation account!!
This has been a great long awaited feature.
No ATO Portal access. No more paper. No more Auskeys!
There are a few steps to set up and then you can lodge your BAS with the ATO from within Xero!
SET UP
There are a few things to do before you can start using this feature:
- Set up User Permissions
- Create the Xero to ATO Connection
Here are the detailed steps to perform this set up.
- New user Permission=Submit BAS
Users who are approved to lodge the BAS for an organisation must have this User Permission ticked.
To do this, someone with Manage User permissions must go to:
- Organisation Settings
- Users
- Select the person who has BAS Lodgement permission in your organisation
- Tick in the Submit BAS Checkbox
- Click Update permissions
- Create the Xero to ATO Connection
To do this:
Go to Business>Reports> Activity Statement
Click Continue
Read your screen:
Step 1: Call the ATO to authorise Xero Software
Step 2: During this call you will need to provide Proof of record ownership. *
This means that the the ATO will need to confirm that you have the right to access information about the organisation you are authorising.
Step 3: provide the information on YOUR screen. That is:
- Your organisation ABN
- Software ID (SSID), and
- The Software Provider details
DO NOT GIVE THE ATO THE INFORMATION FROM THE SCREEN ABOVE – give the information from your own screen!
After you have finished your call with the ATO:
Step 4 – Check your connection is authorised with the ATO – click Check connection and get activity statements.
LODGE
Once you are set up, you can lodge your Activity Statement with the ATO from within Xero.
Make sure that you have reconciled all your bank accounts in Xero and checked your other account balances before you lodge your BAS.
Go to Reports>Activity Statement
Click Review
Xero will communicate with the ATO and fetch the Activity Statement information that is due. The completed Activity Form with the ATO information and the Xero information from your accounts is displayed.
Make sure you review the amounts against the various tax codes.
Click Transactions by tax rate
Scroll down and review the transactions sorted by Tax Rate.
If you see anything strange click onto the transaction and review and adjust if required.
Click Back to the Summary Tab, when you are happy that the transactions and report is correct
- Export the report to PDF
- Click Lodge to ATO
- Tick Authorise the file
- Lodge
- Select the time it has taken
Create a Bill for payment with the exported PDF report attached.
Pay the ATO
Done!!! So easy!
Here are some links to some more information:
Xero Blog about lodging your BAS directly from Xero
https://central.xero.com/s/article/Lodge-activity-statements-with-Xero#Businesses
ATO Link to Changing your Organisation Details for NFPs
*Regarding Proof of record ownership, the ATO website states the following:
“This is a two-step process:
- Step 1: We will ask for your name, tax file number (TFN) or Australian business number (ABN). This allows us to locate your tax record. We will then ask you to provide three items of proof that relate to you as an individual that can be verified in our systems.
- Step 2: We will then establish your authority to access the information on the organisation’s record. Our records must show you are an authorised contact of the organisation.”
“Items of proof include:
- address details – either
- one only of business, residential, postal or email address
- phone number
- financial institution account number – not the BSB
- details from a letter or notice generated by us (the ATO) and issued in the last five years, including
- a notice of assessment sequence number
- an activity statement document identification number (DIN)
- a correspondence reference number
- the date and name or title of an ATO-generated letter or notice that may or may not have a unique identification number, but can be confirmed in our systems.
A maximum of two of the three items of identifying information can be details from ATO notices – with a maximum of one item of proof from each notice. If no notices have been generated, other specific information includes, but is not limited to:
- account details – income tax or client account centre
- the balance – not including nil balances
- the amount of interest imposed – general interest charge or shortfall interest charge
- the amount of refund
- the date and amount of payment made
- the amount and frequency of a payment arrangement
- the instalment amount or rate.
- amounts recorded on an activity statement where the organisation is registered for goods and services tax (GST).
We will only disclose information, and process an amendment to your registration over the phone, if you can meet both steps of the proof of record ownership requirements.”
Please contact us if you would like to discuss the financial management of your church or NFP at [email protected] or 1300 138 627
