Unwanted attention and penalties from the ATO can jeopardise your small business. Protect your businessby avoiding these common small businesstaxerrors.
Not using an accountant
Taxlaws frequently change, and compliance requirements can be time-consuming and demanding. A registered taxagent in Newportwill streamline your financial processes, provide advice on maximising your financesand keep you compliant.
Inaccurate tax returns
Small businessesthat do not declare their income and deductions accurately will attract the ATO’s attention and financial penalties. All foreign income, capital gains tax, businesssales and bank interest must be declared. You must also have legitimate evidence supporting your taxdeduction claims.
Poor record keeping
Businessesthat fail to keep accurate records will struggle to remain compliant. In Newport, our accountantsare 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 businesspurchases 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 Manly, MonaVale, Narrabeen, Newport, Avalon, Dee Why. Our business accounting services can be tailored to suit businesses of any size, at any stage of their life cycle.