I need help with ATO compliance
The Australian Taxation Office (ATO) is the main revenue collection agency of the Australian Government. At a high level, they manage and shape the tax and superannuation systems that support and fund services for Australians.
It’s important to comply with the ATO’s regulations as not doing so can lead to fines and in extreme cases, even prosecution.
Know your obligations
If you haven’t already, spend some time educating yourself on what your obligations are with the ATO. There are six broad obligations that are expected of you:
- you must be truthful
- keep the required records
- take reasonable care
- lodge by the due date
- pay by the due date
- be cooperative
For more information about your obligations, head to the ATO website and search ‘your obligations’.
Keep track of all your expenses
Don’t wait until June to gather your receipts and expenses – By keeping track of them throughout the year, you’ll find compliance with the ATO will become a whole lot easier.
It’s a great idea to know what expenses that you are entitled to claim. As a business, you can typically claim a deduction for your operating expenses. This means that you can claim expenses that you incur during the day-to-day running of your business, like stationary or wages.
You can also claim bigger expenses (capital) like machinery, buildings or equipment; however, this is claimed over a longer period of time.
Maintain your business records
As well as keeping track of all your expenses, you are also required to keep some other records including income tax and employee records and ensure that they are well maintained.
Income tax records include documentation of income and sales, purchase and expense, year-end records, bank records and tax invoices from suppliers. Employee records include tax file numbers and withholding declarations, records of wages and allowances, superannuation and fringe benefit details.
Talk to a tax agent
If you find that you need some help ensuring that you are meeting the ATO’s obligations, keeping track of your expenses or maintaining your business records, take the time to talk to a professional tax agent.
Tax agents not only can provide you with advice, but can provide you with other services such as completing financial statements and more!
At Rising Tide, your finances are important. We’re here to help you put together an effective financial plan to support you on your way to achieving success.