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It is inalienable that any business, no matter its size or complexity, can face a tax audit for business at some point during its operating lifetime. This means it is critical to keep perfect, accurate records at all times and be ready to react when the audit is officially announced. Many businesses sensibly engage the services of a small business tax audit accountant when this happens, and this is an excellent, stress-relieving decision.
At MGB, we have built our reputation on being service leaders in Sydney when assisting companies with a business tax audit in Sydney.
Based on the letter of the law and the recommendations of the Australian Taxation Office (ATO), several key considerations exist when a tax audit for your business is scheduled.
All records must be kept if they pertain to the following stages of your company’s operation:
Any business tax audits accountant worth their salt will make you fully aware of your responsibilities in maintaining and preserving these records. Still, the buck stops in one place at the end of the day, so educate yourself about your responsibilities and stay on top of the matter.
MGB Public Accountants are past masters at steering businesses of all shapes and sizes through the potentially treacherous, obstacle-filled waters of a tax audit for business. Our superb support team is on hand to discuss every conceivable aspect of your financial situation and provide as much information, advice, and guidance as required once you engage our professional, highly effective services.
As the leading provider of Business Valuation Services for businesses in Sydney, MGB Public Accountants offers comprehensive accounting services for all your financial dealings, including:
Before we address record-keeping, it is worth asking, ‘What constitutes a record?’
A record explains the tax and superannuation-related transactions conducted by your business. There must be enough information for the ATO to determine the exact of any transactions and their relevance to your business’s income/expenses. Your records must be in English or easily convertible to English.
Keeping records of all transactions relating to tax, superannuation, and registration affairs is a legal requirement that begins when you start your business and ends when it is sold or dissolved. Financial and legal consequences can follow if you fail to comply with the official record-keeping requirements. This is where the services of a professional business tax audits accountant can be invaluable, as they will understand the criteria inside-out and should ensure you are in full compliance.
Crucial documents you must maintain and keep are related to your business’s income and expenses, but you should also keep records of anything related to the way you calculate your business’s taxation and super affairs.
The minimum information you should include on your record is as follows:
Proactive Measures for Success: Implementing a Business Tax Audits Guide
If your expenses relate to business and personal use, ensure you have clear documents highlighting the business transactions. The information in your records must be stored to protect it from being changed retrospectively or damaged. You may be asked to show that you have appropriate safeguards for this. You also need to be able to reconstruct your original data if you make changes to your record-keeping system over time.
In a nutshell, you should update and keep anything related to money that flows in or out of your business. You need to keep most records for five years, and they should include:
Several red flags are liable to trigger an ATO) audit or draw unwanted attention to your business, including:
According to research, the most common challenges experienced during a business tax audit in Sydney are the following:
Some of these issues can be addressed using the following technologies and best practices:
MGB Public Accountants are here to help and guide you, so why not get in touch today and let us act as your efficient, practical small business tax audit accountant?
Enlisting professional assistance with your taxation in the form of a small business tax audit accountant is highly recommended. Taxation is complex and stressful at the best of times, and the tension can be unbearable if an audit is requested. A business tax audits accountant will take the burden from your shoulders and ensure you have all the documentation and information required. Compliance is the key; nobody is better at helping you achieve it than MGB Public Accountants.
