Northern Beaches Accountants in Newport NSW Australia

Avoid these small business tax errors

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Unwanted attention and penalties from the ATO can jeopardise your small business. Protect your business by avoiding these common small business tax errors.

Not using an accountant

Tax laws frequently change, and compliance requirements can be time-consuming and demanding. A registered tax agent in Newport will streamline your financial processes, provide advice on maximising your finances and keep you compliant.

Inaccurate tax returns

Small businesses that do not declare their income and deductions accurately will attract the ATO’s attention and financial penalties. All foreign income, capital gains taxbusiness sales and bank interest must be declared. You must also have legitimate evidence supporting your tax deduction claims.

Poor record keeping

Businesses that fail to keep accurate records will struggle to remain compliant. In Newport, our accountants are proficient in software such as XERO, to assist with this. It is vital to keep:

  • Cash, online, EFTPOS, bank statements, credit and debit card transactions.
  • Records showing when you use business purchases for private purposes to provide evidence for tax deduction claims.

Incorrect superannuation payments

The ATO will sanction employers that fail to pay their employees’ superannuation correctly and on time. Make sure your mandatory quarterly payments are paid at the correct rate of 9.5% of your employee’s pay. The cash-flow benefits of delaying super payments and missing deadlines are not worth the financial and criminal punishments incurred by frequent breaches.

 

Northern Beaches Accountants is a dedicated team with offices in ManlyMona ValeNarrabeenNewportAvalonDee Why. Our business accounting services can be tailored to suit businesses of any size, at any stage of their life cycle.