Most businesses appreciate how important it is to ensure that their tax preparations are accurate and correct and go out of their way to ensure that they are complying with this requirement.
However, due to some of the complexities of our tax system, it is easy to make a mistake and this can impact the accuracy of your tax return. Today, we look at some of the most easiest and common business tax blunders we have seen small businesses make.
Check if this could be you!
Don’t worry if you have made an accidental blunder. Here at BSN & Co we are highly experienced at working with you to correct your tax returns and ensure that all future lodgements are accurate and on time. We will even liaise between you and the ATO to clear up any errors and get you back on the right track.
1. Underestimating the importance of good record keeping
When you run your own business sometimes things are so busy that keeping good records can be hard. Receipts go missing, financial records are not always kept as up-to-date as they should be and payments and lodgements can easily be overlooked. The key is to keep on top of your record keeping. A couple of hours a week makes it manageable; leave it and it becomes a monster task that you dread. So, either set aside a regular time each week to go through your records and keep them up to date or, alternatively, hire a bookkeeper to do this for you. This ensures that your financials are kept up to date and are correctly recorded, freeing you up to attend to all your other tasks. Here at BSN & Co we have our own bookkeeping team so we can assist you to maintain accurate records. What’s more, by using our bookkeeping service you will save on your tax returns as we don’t need to waste time rechecking data accuracy. So free up your time, keep accurate records and save money. Call us today to find out more.
2. Ignoring your purchase receipts
Keep all of your purchase receipts as these are costs you can claim in your tax returns. Not keeping them safe will not only cost you $$$ that you can’t claim in your tax returns, it will also be very difficult to calculate your annual business costs accurately. This makes it much harder to assess where you are from one month to the next, plan and also evaluate your pricing to maintain a good profit margin.
By keeping an eye on your expenses and retaining all receipts you will save hours of time and stress when it comes to preparing your tax returns, not to mention the $$$ in tax you will save. Speak to us today – we can help you create a system that makes monitoring and keeping track of your purchase receipts child’s play.
3. Not paying your employees’ superannuation
Paying superannuation contributions for all your employees at a rate of 9.5% is a legal requirement. We have seen companies put off making these payments to try to improve their business cashflow, however this is not advisable. If you are struggling with your cashflow, speak to us today and identify what you can do about it. Withholding superannuation is a very short term answer but it can land you in big trouble with the ATO. In recent months they have been far more aggressive in enforcing the need to pay superannuation, forcing companies into liquidation or holding directors personally liable, which can lead to them being declared bankrupt.
If you’re in a muddle with your superannuation requirements speak to us today. We can meet with you to gain an understanding of what is going on with your business and work with you to correct any issues. Where necessary we can deal with the ATO on your behalf to come up with a workable solution for both you and them.
Managing your financial and taxation requirements is far easier when you have a reliable accountant on your side, so why not call us today for an obligation free meeting? We can review your current business situation and identify a plan to help you get to where you want to be.
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