Industry Insight: All About ATO Audits

Is your business about to be audited by the ATO?

A letter from the ATO can send a chill down the spine of any small business owner. Treading the fine line between survival and smart business practices, all owners have to deal with this tight rope.

As a previous Financial Planner, I would help to identify potential risks to businesses and explain how to stay off the ATO radar. At the end of the day it comes down to 3 main objectives:

  1. Stay on top of super obligations
  2. The ATO publishes benchmarks for our industry, make sure you are sitting within them
  3. Invest in an accounting system that helps you meet your legal and reporting requirements

Always keep good records of your sales history and make sure they line up with reported figures. About 30% of cafes fail to report on time so this can also be a good way to stay off the radar.

In our business, we use Xero as our accounting system which helps us integrate paperless invoices and storage or receipts. This is important as we need to hold them for 7 years.

If you want some help or guidance, send me an email or call 1300 030 327. For further information on how I can help you with any business issues you may be facing, head over to our consulting page. 

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