ATO small business benchmarks
The Australian Taxation Office is constantly finding ways to clean up the cash economy and make sure that small business owners report all their income. One way they do this is through ATO small business benchmarks. If you own a small business and you have never heard of ATO small business benchmarks then this article could help you avoid an ATO audit.
The Tax Office uses benchmarking to compare the performance of your business against other similar businesses in your industry. If your business does not stack up, then there is a big chance you may be audited.
A good accountant will study your Profit and Loss statement each year, comparing it to ATO small business benchmarks, and alerting you if your figures are outside the benchmarks. If you don’t hear from your accountant, then don’t just assume everything is ok. It is absolutely imperative that business owners embrace the monitoring of their own benchmarks as part of their quarterly business health check.
Download your benchmarks from the ATO website today. If you are unsure what industry you fall under, phone your accountant for help or alternatively phone the tax office.
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