BAS
BAS statements are only ever provided direct to your accountant under contract due diligence.
They are otherwise a virtually irrelevant document due to the inconsistency of reporting methods.
As example, Sales on a BAS could be
- Total Sales/Takings (cash handling including lotteries & other commissions)
- Total General Sales + Net Commission (commission lines should never be shown as “takings”, only the GST paid earnings after expenses)
- Total Banking after prizes are paid (this significantly understates actual performance if looking for trading profit margins)
- a PAYG agreement simply paying the same amount quarterly based on the prior year, bearing no relevance to current performance
- or other methodology we have seen that is mathematically correct, yet difficult to follow or reference to financials as most lodged BAS show only 4 to 6 key numbers out of over 20 fields
As buyers often compare different opportunities, P&L’s and POS Reports are far less confusing to follow than inconsistent BAS methodology.
Buyers accountants often want BAS statements to cross reference and verify financials, which they are welcome to, but ONLY under contract.